State-owned Indian Overseas Bank (IOB) on Friday reported an 18 percent growth in its profit at Rs 650 crore in the March quarter due to an increase in interest income and improved asset quality.
The Chennai-based bank had posted a net profit of Rs 552 crore in the same quarter a year ago.
The bank's total income increased to Rs 6,622 crore in the latest March quarter from Rs 5,719 crore in the year-ago period, IOB said in a regulatory filing. The interest income of the bank rose to Rs 5,192 crore as against Rs 4,215 crore in the fourth quarter of FY22.
On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 7.44 percent as compared with 9.82 percent a year ago.
At the same time, net NPAs too eased to 1.83 percent as against 2.65 percent in the year-ago period. The capital adequacy ratio increased to 16.10 percent in the quarter under review and over 13.83 percent in FY22.
The bank's board has given approval for raising paid-up equity Capital, aggregating up to Rs 1,000 crore through Follow-on Public Offer (FPO)/Rights issue/ Qualified Institutional Placement (QIP) or any other mode, it said.
Besides, the board has also given clearance for raising Tier II Capital, aggregating up to Rs 1,000 crore through the issuance of Basel III Compliant Tier II bonds or such other securities.
