Q1FY21 results: Indian Overseas Bank net profit jumps 135 per cent YoY

Indian Overseas Bank, a major public sector bank, announced its quarterly results on August 20, 2020. Net profit increased by 135.3 per cent YoY to Rs 120.69 crore for Q1FY21 as compared to Rs 342.1 crore it reported in Q1FY20.                                                                                                                                                                                                                                              

Net interest income (NII) stood at Rs 1412.32 crore which witnessed a growth of 9.6 per cent YoY, as against Rs 1289 crore it reported in Q1FY20. Net interest margin stood at 2.08 per cent in Q1FY21 that increased 7 bps as against 2.01 per cent for the same quarter, previous year.

Total Income of the bank grew by 4.5 per cent YoY to Rs 5,233.63 crore in Q1FY21 from Rs 5,006.48 crore in Q1FY20. Operating profit for Q1FY21 stood at Rs 1,094.15 crore which increased by 32 per cent YoY as Rs 828.70 crore inQ1FY20.

Provisions and contingencies decreased by 16.3 per cent YoY to Rs 969.52 crore in Q1FY21, compared to  Rs 1,157.82 crore in Q1FY20.

On asset quality of the bank improved on sequential basis. Gross non-performing asset (NPA) in Q1FY21 stood at Rs 18,290.84 crore registering a decline of 8.1 per cent QoQ. Gross NPA (%) stood at 13.9 per cent in Q1FY21, which declined by 88 bps QoQ as against 14.78 per cent in previous quarter. Net NPA in came in at Rs 6,080.89 crore witnessing a decline of 7.9 per cent QoQ. Net NPA (%) stood at 5.1 per cent in Q1FY21 with a decline of 34 bps QoQ, compared to 5.44 per cent in previous quarter. 

Capital adequacy ratio (%) stood at 10.93 per cent in Q1FY21 that increased by 91 bps QoQ, as against 10.02 per cent in previous quarter. 

The share closed with gains of 3.63 per cent at Rs11.43 in today’s session on BSE.