Indian Overseas Bank (IOB) shares surged more than 7% on Wednesday, January 24, after the lender reported strong growth in profit after tax (PAT) and net interest income (NII) in the December quarter.
The public sector bank’s net profit jumped 30.3% on a year-on-year (YoY) basis to ₹723 crore in the third quarter of FY 2024-24 compared to ₹555 crore in the same period a year ago. Its operating profit gained 15.6% YoY to ₹1,780 crore in the quarter from ₹1,540 crore in the corresponding year-ago period.
Indian Overseas Bank’s net interest income (NII) grew 22.15% in the October–December 2023 period to ₹6,176 crore from ₹5,056 crore in the corresponding quarter of last year. However, its net interest margin (NIM) fell marginally to 3.12% during the period from 3.27% in the December 2022 quarter.
The bank witnessed a sharp drop in its gross non-performing assets (NPA) ratio to 3.9% in Q3FY24 compared to 8.19% recorded in the same quarter last year. The net non-performing assets (NPA) ratio also followed a similar trend in the quarter under review, dropping to 0.62% in the December quarter from 2.43% in the preceding financial year.
The bank’s current account and savings account (CASA) ratio remained muted at 43.49% in Q3FY24 from 44.5% in Q3FY23.
After the third quarter results, shares of Indian Overseas Bank gained as much as 7.18% to hit an intraday high of ₹46.84 per share, only ₹4 lower from its 52-week high of ₹51 per piece recorded last year on October 4, 2023.
(Edited by : Ajay Vaishnav)
