IOB's Profits Surge Amid Declining Bad Loans

Indian Overseas Bank reported a 21% increase in net profit, reaching Rs 874 crore for Q3 2024, driven by improved loan quality. Income rose to Rs 8,409 crore, with reduced NPAs and a strengthened Capital Adequacy Ratio to 16.97%. The bank's financial metrics showed notable improvement.

Indian Overseas Bank, a state-owned lender, announced an impressive 21 percent rise in net profit for the third quarter of 2024, reaching Rs 874 crore. The significant boost comes as the bank reduces its bad loans, signaling a positive shift in its financial health.

The Chennai-based bank's total income jumped to Rs 8,409 crore, a notable increase from Rs 7,437 crore in the same period last year, according to a recent regulatory filing. Operating profit also saw a significant rise to Rs 2,266 crore, underscoring the bank's improving performance metrics.

On the asset quality front, Indian Overseas Bank managed to lower its gross Non-Performing Assets to 2.55 percent of gross loans by December 2024, compared to 3.90 percent a year prior. This reduction in NPAs, along with a slight increase in its Capital Adequacy Ratio to 16.97 percent, reflects the bank's robust recovery and financial stability strategies.

(With inputs from agencies.)