State-owned Indian Overseas Bank (IOB) on Saturday reported a 20% jump in net profit to ₹392 crore for the first quarter of the current fiscal, helped by a decline in bad loans.
The Chennai-based lender had reported a net profit of ₹327 crore in the April-June quarter of 2021-22.
IOB said in a regulatory filing that the total income of the bank declined to ₹5,028 crore in the first quarter of 2022-23, as against ₹5,607 crore in the same period a year ago.
Operating profit declined to ₹1,026 crore from ₹1,202 crore a year ago.
However, the interest income of the bank increased to Rs 4,435 crore as against Rs 4,063 crore.
Net Interest Margin (NIM) increased to 2.53% as against 2.34% at the end of Q1 FY2012.
The gross non-performing assets (NPA) ratio of the bank declined to 9.03% from 11.48 per cent at the end of June last year. Similarly, net NPAs declined from 3.15% to 2.43%.
Consequently, the provision for bad loans declined to ₹132.73 crore from ₹1,010.15 in the same period a year ago.
The provision coverage ratio (PCR) improved to 91.86 per cent as on June 30.