Table of Content
- 1 Indian Overseas Bank: Financial Performance Overview for Q4 2023:
- 2 Indian Overseas Bank Financial Performance Comparison: Quarter Ended 31st December 2023 vs. Quarter Ended 30th September 2023 (Q-o-Q):
- 3 Key Financial Ratios Year-over-Year (YoY) Comparison:
- 4 Performance Highlights – 31.12.2023
- 5 CAPITAL ADEQUACY RATIO (CRAR):
- 6 About Indian Overseas Bank
Indian Overseas Bank: Financial Performance Overview for Q4 2023:
For the quarter ending 31st December 2023, notable improvements were witnessed in various financial indicators, showcasing robust performance.
1. Net Profit and Asset Quality:
- The Net Profit for Q4 2023 reached Rs. 723 Crores, reflecting a substantial improvement from Rs. 555 Crores in Q4 2022.
- Net NPA significantly improved to 0.62% as of 31st December 2023, compared to 2.43% on 31st December 2022.
- GNPA ratio exhibited a positive trend, improving to 3.90% on 31st December 2023, down from 8.19% on 31st December 2022.
Additional Read: Q3 Results Dashboard
2. Provision Coverage:
The Provision Coverage Ratio (PCR) stood at an impressive 96.85%, indicating a solid financial cushion. This represents an improvement from 96.76% in September 2023.
3. Performance Highlights (Year-over-Year):
- Total Business grew to Rs. 4,94,209 Crores on 31st December 2023, up from Rs. 4,32,530 Crores on 31st December 2022.
- Total Deposits increased to Rs. 2,78,046 Crores, compared to Rs. 2,57,480 Crores in December 2022.
- CASA reached Rs. 1,20,915 Crores, accounting for 43.49% on 31st December 2023, showing a slight decrease from 44.50% on 31st December 2022.
- Gross Advances stood at Rs. 2,16,163 Crores, up from Rs. 1,75,050 Crores on 31st December 2022.
- Operating Profit rose to Rs. 1,780 Crores from Rs. 1,540 Crores in Q4 2022.
4. Income Breakdown:
- Net Interest Income stood at Rs. 6,176 Crores, showing an increase from Rs. 5,056 Crores in Q4 2022.
- Non-Interest Income was Rs. 1,262 Crores, up from Rs. 950 Crores in the same period last year.
- Total Income for Q4 2023 reached Rs. 7,437 Crores, compared to Rs. 6,006 Crores in Q4 2022.
5. NPA Management:
- Gross NPA reduced both in quantum and percentage, standing at Rs. 8,441 Crores with a ratio of 3.90% on 31st December 2023, compared to Rs. 14,333 Crores with a ratio of 8.19% on 31st December 2022.
- Net NPA improved to Rs. 1,303 Crores, with a ratio of 0.62% on 31st December 2023, down from Rs. 4,000 Crores with a ratio of 2.43% on 31st December 2022.
6. Cash Recovery and PCR:
- Total Cash Recovery for December 2023 amounted to Rs. 327 Crores, indicating a positive trend from Rs. 460 Crores in December 2022.
- Provision Coverage Ratio reached a robust 96.85% on 31st December 2023, exhibiting an improvement from 91.34% on 31st December 2022.
Indian Overseas Bank Financial Performance Comparison: Quarter Ended 31st December 2023 vs. Quarter Ended 30th September 2023 (Q-o-Q):
1. Business Growth:
Total Business witnessed improvement, reaching Rs. 4,94,209 Crores on 31st December 2023, up from Rs. 4,82,006 Crores on 30th September 2023.
2. Deposit and CASA Dynamics:
- Total Deposits stood at Rs. 2,78,046 Crores on 31st December 2023, compared to Rs. 2,73,093 Crores on 30th September 2023.
- CASA of the Bank slightly decreased to 43.49% on 31st December 2023, from 43.65% on 30th September 2023. However, the total CASA for Q4 2023 increased to Rs. 1,20,915 Crores from Rs. 1,19,206 Crores in Q3 2023.
3. Advances and Profitability:
- Gross Advances increased to Rs. 2,16,163 Crores on 31st December 2023, up from Rs. 2,08,913 Crores on 30th September 2023.
- Operating Profit for Q4 2023 reached Rs. 1,780 Crores, indicating an increase of Rs. 103 Crores from Rs. 1,677 Crores in Q3 2023.
- Net Profit for Q4 2023 improved to Rs. 723 Crores, compared to Rs. 625 Crores in Q3 2023.
4. Income Breakdown:
- Total Income for Q4 2023 was Rs. 7,437 Crores, up from Rs. 6,935 Crores in Q3 2023.
- Interest Income stood at Rs. 6,176 Crores for Q4 2023, compared to Rs. 5,821 Crores in Q3 2023.
- Non-Interest Income increased to Rs. 1,262 Crores for Q4 2023 from Rs. 1,114 Crores in Q3 2023.
5. NPA Management:
- Gross NPA as of 31st December 2023 stood at Rs. 8,441 Crores with a ratio of 3.90%, showing a reduction from Rs. 9,893 Crores with a ratio of 4.74% on 30th September 2023.
- Total Cash Recovery for Q4 2023 was Rs. 327 Crores, compared to Rs. 435 Crores in Q3 2023.
- Net NPA reduced to Rs. 1,303 Crores (0.62%) on 31st December 2023, down from Rs. 1,364 Crores (0.68%) on 30th September 2023. The NNPA decreased by 0.06% Q-o-Q.
6. Provision Coverage:
- Provision Coverage Ratio stood at 96.85% on 31st December 2023, showing a marginal improvement from 96.76% on 30th September 2023.
Key Financial Ratios Year-over-Year (YoY) Comparison:
1. Average Cost of Deposit:
The Average Cost of Deposit increased to 4.82% as of 31st December 2023, compared to 4.10% on 31st December 2022. This signifies a rise in the cost incurred by the bank for each deposit over the year.
2. Average Yield on Advances:
The Average Yield on Advances stood at 8.88% on 31st December 2023, reflecting an improvement from 8.43% on 31st December 2022. This indicates the increased return generated by the bank on its loan portfolio.
3. Net Interest Margin (NIM):
Net Interest Margin saw a slight decline, standing at 3.12% on 31st December 2023, down from 3.27% on 31st December 2022. This metric represents the difference between interest earned and interest expended, suggesting a marginal adjustment in profitability.
4. Credit Deposit Ratio:
The Credit Deposit Ratio surged to 77.74% on 31st December 2023, compared to 67.99% on 31st December 2022. This highlights an increased proportion of the bank’s deposits being utilised for extending credit, indicating a higher lending activity and utilisation of funds.
Performance Highlights – 31.12.2023
| Y-o-Y | Variance | |||
| 31.12.2023 | 31.12.2022 | Rs. in crore | % Growth | |
| Operating Profit | 1,780 | 1,540 | 240 | 15.58% |
| Net Profit | 723 | 555 | 168 | 30.27% |
CAPITAL ADEQUACY RATIO (CRAR):
(As on 31.12.2023)
| Particulars | Basel III | Regulatory Requirement |
| CET 1 | 13.95% | 5.50% |
| Tier I | 13.95% | 7.00% |
| Tier II | 2.85% | 2.00% |
| Total CRAR | 16.80% | 9.00%* |
*Excluding CCB
Additional Check: Indian Overseas Bank Share Price
About Indian Overseas Bank
Founded on 10th February 1937 by Shri. M.Ct.M. Chidambaram Chettyar, Indian Overseas Bank (IOB) was established with a primary focus on specializing in foreign exchange business in banking, envisioning a global presence. The bank commenced operations simultaneously in Karaikudi, Chennai, and Rangoon in Burma (present-day Myanmar), expanding further to Penang, Malaysia. By the time of Independence, IOB boasted 38 branches in India and 7 branches abroad, with Deposits at Rs.6.64 Crores and Advances at Rs.3.23 Crores. The bank was among the 14 major banks nationalized in 1969, with 195 branches in India and aggregate deposits of Rs.67.70 Cr. and Advances of Rs.44.90 Cr. IOB currently extends its overseas presence to four countries: Singapore, Hong Kong, Thailand, and Sri Lanka.
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Sources: https://www.bseindia.com/xml-data/corpfiling/AttachLive/016da356-ef18-422d-bfde-e240f69e5135.pdf
