https://img.etimg.com/thumb/msid-124609398,width-1200,height-630,imgsize-40610,overlay-etmarkets/articleshow.jpg
The bank set aside Rs 673 crore in the quarter as total provisions while it was Rs 1146 crore in the year-ago period. Provisions against bad loans were higher at Rs 121 crore against Rs 71 crore.
IOB’s net interest margin for the quarter improved to 3.21% as compared with 3.08% in the year-ago period. The bank has reported lower cost of deposits in the quarter at 5.05% against 5.15% earlier, one of the reasons behind higher NIM.
“We are targeting to keep NIM at 3.20-3.25% in the next two quarters,” managing director Ajay Kumar Srivastava told ET.
The state-owned bank’s pre-provision operating profit stood 13% higher at Rs 2400 crore against Rs 2128 crore in the corresponding period last fiscal. This was backed by a 21% rise in net interest income at Rs 3059 crore. Other income was 16% lower at Rs 1365 crore.
Its gross advances grew 20.8% year-on-year to Rs 2.78 lakh crore at the end of September while total deposits expanded by 9% to Rs 3.39 lakh crore. The bank has its low cost current and savings account share at 40.5%, falling from 42.4% a year back.The gross non-performing assets ratio stood at 1.83%, improved from 2.72% a year back. The gross ratio was 1.97% three months back. Net NPA was at 0.28% against 0.47%.
The bank’s share price fell 1.12% to Rs 39.78 on BSE after touching the intra-day high at Rs 41 seen immediately after the announcement of the profit numbers.
