CEO Partha Pratim Sengupta predicts that the bank’s annual net profit will be double that of Rs 831 in 2009. “We’re on the road to doubling that,” Sengupta said after releasing quarterly numbers.
However, the net interest margin, an important parameter for measuring profitability, dropped from 2.36% to 2.34%.
Regarding stress building for SME units following the second wave of the pandemic, Sengupta said banks’ allowances for standard assets are three times the regulatory requirements. “We are not isolated from the economy, but we are well protected from the possible downsides.”
Its reserve coverage was as high as 91.56%, an improvement over 90.3% three months ago. It rebuilt a loan worth Rs 4,300, while the other Rs 3000 loans are in the rebuild pipeline.
The lender booked a fresh slippage of Rs 115.8 billion and canceled the loan of Rs 79.3 billion.
Operating income increased 9.9% from Rs 1094 to Rs 1202 over the same period due to lower interest expense. Other income, including financial gains, increased 17% from Rs 932 to Rs 1092.
IOB collected 1113 rupees in cash against 275 rupees in the same period last year. The bank has set an annual collection target of 4000 rupees.
Asset quality has improved and the total toxic asset ratio at the end of June fell from 13.90% a year ago to 11.48%.
Bank advance payments rose from Rs 1.32 to Rs 1.39, despite deciding not to take new exposures to stressed sectors and low-rated accounts.
IOB Q1 Results: IOB Q1 Results: Net profit almost tripled to 327 rupees.
https://economictimes.indiatimes.com/markets/stocks/earnings/iob-q1-results-net-profit-jumped-nearly-three-fold-to-rs-327-cr/articleshow/85018903.cms IOB Q1 Results: IOB Q1 Results: Net profit almost tripled to 327 rupees.