Indian Overseas Bank- Q2 Results

Last Updated on October 30, 2023 by BFSLTeam BFSLTeam

On October 27, 2023: Indian Overseas Bank BSE, (NSE: IOB) announced its Q2 2023-24 financial results, with Q2 results at the top of the charts regarding the bank’s profitability and its revenue on a YoY basis.  

Key Highlights Of Indian Overseas Bank

The Indian Overseas Bank has declared its Q2 results and here are key highlights of the same from the view of a QoQ and YoY level: 

• The bank’s total business has seen a high compared to previous quarters – at ₹4,82,006 Cr in Q2 FY23-24 compared to ₹4,34,441 Cr in Q2 FY22-23.
• The Chennai-based lender’s total bank deposits stood at ₹2,73,093 Cr for Q2 FY23-24 versus ₹2,61,728 Cr at the end of Q2 FY22-23. 
• CASA of the Indian Overseas Bank saw a jump and now stands at ₹1,19,206 Cr at 43.65% YoY in Q2 compared with the same quarter of the previous fiscal year when CASA was at ₹1,11,924 Cr at 42.76% YoY. 
• In Q2 FY 23-24, Gross Advances stood at ₹2,08,913 Cr versus ₹1,72,713 Cr at the close of Q2 FY22-23. 
• I8n Q2 FY23-24 Operating Profit stands at ₹1,677 Cr while it was ₹1,494 Cr in Q2 FY22-23. 
• For this Q2, the Net Profit was up 25% at ₹625 Cr while it was at ₹501 Cr in Q2 FY22-23.
• Total Income of the bank has witnessed a surge in Q2 FY23-24, standing at ₹6,935 Cr relative to ₹5,852 Cr in Q2 of the last fiscal year. 
• Interest Income was at ₹5,821 Cr for this Q2, while it stood at ₹4,718 Cr for Q2 FY22-23.
• Non-Interest Income stands at ₹1,114 Cr for Q2 FY23-24, while it was at ₹1,135 Cr for Q2 FY22-23. 
• In terms of NPA Management metrics, the GNPA of Q2 FY23-24 stands at ₹9,893 Cr (with a ratio of 4.74%), while it was ₹14,726 Cr (with a ratio of 8.53%) in Q2 Fy22-23. This reflects a reduction in GNPA, both in terms of a percentage and in quantum of Gross Advances YoY. 

Additional Read: Q2 Results Dashboard

Other Quarterly Report Features

Here are some more highlights of the Q2 report of IOB:

• There was a distinct reduction in Gross NPA for Q2, relative to the same quarter of the previous fiscal year.
• Total Cash Recovery was lower in Q2 FY23-24 as against Q2 FY22-23. 
• Net NPA in Q2 was at ₹1,364 Cr (with a ratio of 0.68%) in Q2 FY23-24 versus ₹4,148 Cr (with a ratio of 2.56%) in Q2 FY22-23. Thus, Net NPA has been reduced by ₹2,784 Cr in absolute terms. 
• The Provision Coverage Ratio was at 96.76% in this Q2 relative to 90.94% in Q2 of the previous fiscal year, owing to the bank’s efforts at making required provisional advances in particular accounts to improve the Net NPA. 

Main YoY Financial Ratios

The bank’s performance in Q2 FY23-24 is reflective of the key financial ratios shown below:

• The Average Cost of Deposit stands at 4.67% in this recent quarter as against 4.11% in Q2 FY22-23.
• The Average Yield on Advances is at 8.78% in Q2 FY23-24, relative to 7.83% in Q2 FY22-23.
• The Net Interest Margin is at 3.12% for Q2 FY23-24, while it was at 2.97% in Q2 FY22-23. 
• The Credit Deposit Ratio is at 76.50% for Q2 of the present fiscal year as against 65.99% in Q2 of the previous fiscal year.
• RoE and RoA are at 16.16% and 0.75%, respectively, for Q2 FY23-24, while the same were at 15.42% and 0.65%, respectively, in Q2 FY22-23. 

Also Read: Indian Overseas Bank Share Price

About Indian Overseas Bank 

Indian Overseas Bank (IOB) was created in February 1937 by M.Ct.M. Chidambaram Chettyar, a veritable pioneer in many areas. The bank was established with the principal aim of specializing in the business of foreign exchange in banking so that the bank could boast an international presence. Business operations of the Indian Overseas Bank began simultaneously with the opening of banks in Chennai, Karaikudi, and Rangoon followed by a bank in Penang.

At the start of the Indian Independence Movement, IOB touted 38 Indian branches and 7 overseas branches with deposits at Rs.6.64 Crore and Advances at Rs.3.23 Crore during that period. In 1969, IOB had the distinction of being one of the leading banks that were nationalised with 195 branches in its kitty and aggregate deposits and advances at Rs. 67.70 crore and Rs. 44.90 crore, respectively. Currently, the Indian Overseas Bank has a robust Indian presence in the industry and a healthy global presence in Sri Lanka, Hong Kong, Singapore, and Thailand.

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Source:

https://www.iob.in/presentation_to_analysts.aspx