Indian Overseas Bank targets 13-14% credit growth next year, plans fundraise
Ajay Kumar Srivastava, Managing Director and CEO, is confident that the public sector lender will maintain net interest margin at 3.10-3.15% in the coming quarters.
Chennai-based Indian Overseas Bank will consider raising funds in the first half of the next financial year. Ajay Kumar Srivastava, the Managing Director and CEO, said a decision on whether to raise funds through Qualified Institutional Placement (QIP) or Follow-on Public Offering (FPO), will be made at the next board meeting.
“There is no indication of government trimming down the stake in the bank, but we are planning to go for raising equity, maybe in Q1 or Q2 (first or second quarter) of the next year.,” he told CNBC-TV18.
Srivastava, however, refrained from sharing any details on the proposed fundraise amount.
Indian Overseas Bank bank's net profit for the third quarter rose 30.3% year-on-year (YoY) to ₹723 crore from ₹555 crore. Its operating profit rose by 15.6% YoY to ₹1,780 crore.
The public sector lender also grew its net interest income (NII) by 22% YoY to ₹6,176 crore in the October–December 2023 period. However, the net interest margin (NIM) slightly decreased to 3.12% from 3.27% in the previous quarter.
Srivastava explained that despite challenges in the market such as liquidity issues and limited availability of deposits, the bank aims to achieve a double-digit credit growth of around 13 to 14% in the next year.
He expressed confidence in maintaining a NIM of around 3.10-3.15% in the coming quarters, citing the bank's consistently high Current Account Savings Account (CASA) ratio, which has been above 43% for several quarters.
Shares of the bank have gained more than 79% over the past year. The bank's market capitalisation is ₹91,676 crore.
(Edited by : Shweta Mungre)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Andhra Pradesh: Kuppam loyalty test for TDP chief Chandrababu Naidu
May 6, 2024 9:35 AM
PM Modi visits Ram Mandir for first time since 'Pran Pratishtha', offers prayers before roadshow
May 5, 2024 8:59 PM