State-owned Indian Overseas Bank (IOB) on Wednesday posted a more than two-fold jump in net profit for the July-September quarter of this fiscal to Rs 376 crore compared to Rs 148 crore in the year-ago period. The bank also came out of the RBI's Prompt Corrective Action (PCA) framework during the reported period.
Total income for the quarter ending September stood at Rs 5,376 crore as against Rs 5,431 crore a year ago, the bank said in a regulatory filing. On the asset front, the bank witnessed a good performance with the net non-performing assets (NPA) falling to 2.77 percent of the net advances as of September 30, 2021, as against 4.30 percent a year ago.
"Net NPA has stood at 2.77 percent which is within prescribed RBI guidelines," IOB said in a release. In value terms, net NPAs fell to Rs 3,741 crore from Rs 5,291 crore.
In an interview with CNBC-TV18, Partha Pratim Sengupta, MD & CEO at Indian Overseas Bank said that the banks focus remain on capital light accounts and on faster credit delivery.
“The banks focus has been on the capital light accounts and on faster credit delivery with competitive rate of interest. Also, we have been keeping our provision book strong. So, if you look at our balance sheet, we are carrying a PCR of 92 percent. In fact our corporate loan book is covered more than 97 percent and that is why whenever there is any upswing in future, we will book and if there is any downside it will not affect us that much because already the provisions have been made.”
He expects provision books to continue to be strong. He added that they are not expecting any further major large slippages.
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With text inputs from PTI.