On Friday, State-owned Indian Overseas Bank posted a net profit of Rs 148 crore for the quarter ended on 30 September, 2020, as bad loans and provisions during the period declined. Previous year, the lender had reported a net loss of Rs 2,254 crore for the September quarter.
The bank’s net profit grew 22.3 per cent on a sequential basis from Rs 121 crore as on 30 June, 2020. Its total income rose 8.1 per cent to Rs 5,431 in the September quarter, against Rs 5,024 crore in the same quarter a year earlier, said the lender in a regulatory filing.
During the September quarter, interest income increased to Rs 4,363 crore from Rs 4,276 crore in the year-ago quarter. The bank’s asset quality improved on a sequential basis as its gross Non-Performing Assets (NPAs) declined to 13.04 per cent of the gross advances as of 30 September, 2020 at the end of September, 2019. Gross NPAs fell to Rs 17,659.63 crore in September quarter, against Rs 28,673.95 crore in the previous year quarter. Net NPAs were 4.30 per cent down at Rs 5,290.60 crore from 9.84 per cent at Rs 12,507.97 crore a year-ago.