Indian Overseas Bank’s (IOB) shares gained over 4 per cent on Wednesday after it reported a near 58 per cent bounce in its net profit to Rs 552 crore in the March quarter.
The company’s shares rose 5 per cent to Rs 17.85 during the session and finally closed over 4 per cent higher.
On Wednesday, the public sector lender reported a net profit of Rs 552 crore, a near 58 per cent jump from a year ago, in the quarter that ended in March, mainly due to lower bad loans’ provisioning.
In the March quarter of last year, the bank had posted a net profit of Rs 350 crore.
But a stock exchange filing showed the company reported a lower total income for the quarter, down to Rs 5,719 crore from Rs 6,074 crore in the same period last year.
The bank’s interest income rose by 4 per cent in March’s quarter to Rs 4,215 crore.
More importantly, the company’s asset quality improved, with the Gross Non-Performing Assets (NPAs) down to 9.82 per cent of the gross advances as of March 31, 2022, from 11.69 per cent in the same period a year ago. It was 10.40 per cent in the December 2021 quarter.
IOB’s net NPAs or bad loans fell to 2.65 per cent from 3.58 per cent on an annual basis.