𝐈𝐧𝐝𝐢𝐚𝐧 𝐎𝐯𝐞𝐫𝐬𝐞𝐚𝐬 𝐁𝐚𝐧𝐤 𝐀𝐧𝐧𝐨𝐮𝐧𝐜𝐞𝐬 𝐑𝐨𝐛𝐮𝐬𝐭 𝐐𝟐𝐅𝐘𝟐𝟓 𝐑𝐞𝐬𝐮𝐥𝐭𝐬; 𝐑𝐞𝐩𝐨𝐫𝐭𝐬 𝟐𝟒.𝟑𝟐% 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐢𝐧 𝐍𝐞𝐭 𝐏𝐫𝐨𝐟𝐢𝐭

Chennai, October 17,  2024:  Indian Overseas Bank (IOB) today announced robust financial results for the quarter ending September 30, 2024 (Q2FY25), reflecting strong growth across key financial metrics and a continued focus on asset quality improvement.

Key Highlights:

• Total Business saw a significant year-on-year (Y-o-Y) growth of 12.20%, reaching ₹5,40,801 Crore, up from ₹4,82,006 Crore.
• Total Deposits rose by 13.75% Y-o-Y to ₹3,10,652 Crore.
• Gross Advances increased by 10.16% to ₹2,30,149 Crore.
• Operating Profit grew substantially by 26.89% Y-o-Y to ₹2,128 Crore, up from ₹1,677 Crore.
• Net Profit also saw a notable increase, rising by 24.32% Y-o-Y to ₹777 Crore.

Strong Asset Quality and Profitability: IOB has demonstrated exceptional progress in reducing non-performing assets:

• Gross NPA Ratio decreased by 202 basis points (bps) to 2.72% from 4.74% a year ago.
• Net NPA Ratio improved by 21 bps to 0.47% from 0.68% Y-o-Y.
• Provision Coverage Ratio (PCR) improved to 97.06%, reflecting an increase of 30 bps Y-o-Y.
• The Return on Assets (ROA) for Q2FY25 reached 0.82%, showing an improvement of 7 bps from the previous year, while Return on Equity (ROE) increased to 16.90%, up by 74 bps Y-o-Y.

Income and Margin Growth: IOBs income generation remained strong:

• Total Income increased by 22.34% Y-o-Y to ₹8,484 Crore.
• Interest Income grew by 17.69% Y-o-Y to ₹6,851 Crore.
• Non-Interest Income saw an impressive Y-o-Y growth of 46.59%, reaching ₹1,633 Crore.
• Additionally, the Net Interest Margin (NIM) stood at 3.08% for the quarter.

Capital Adequacy: The bank’s Capital Adequacy Ratio (CRAR), under Basel III, remained robust at 17.45%, with a Tier I component of 14.75%.

Enhanced CASA and CD Ratios

• CASA deposits improved by 10.61% Y-o-Y, totaling ₹1,31,856 Crore, with a CASA ratio of 42.44% as of September 30, 2024.
• The Credit to Deposit (CD) Ratio stood at 74.09% for the quarter.

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