State-owned Indian Overseas Bank (IOB) on Wednesday reported a nearly 58 per cent jump in net profit at Rs 552 crore in the quarter ended March 2022, mainly due to lower provisioning for bad loans.
The bank had posted a net profit of Rs 350 crore in the year-ago period.
However, the total income of the bank during the latest March quarter fell to Rs 5,719 crore as against Rs 6,074 crore in the same period a year ago, according to a regulatory filing.
The bank's interest income rose by 4 per cent in the fourth quarter ended March to Rs 4,215 crore.
There was an improvement in the asset quality as the gross Non-Performing Assets (NPAs) declined to 9.82 per cent of the gross advances as of March 31, 2022 from 11.69 per cent in the year-ago period. The same was at 10.40 per cent at the end of December 2021.
The net NPAs or bad loans fell to 2.65 per cent from 3.58 per cent on an annual basis. Sequentially, it was slightly high compared to 2.63 per cent at the end of December 2021.
The provisions for bad loans and contingencies for the March 2022 quarter fell to Rs 1,014 crore as against Rs 1,380 crore in the year-ago period.
On a full year basis, the bank reported an 106 per cent increase in net profit at Rs 1,710 crore in 2021-22. It was at Rs 831 crore in 2020-21.
However, yearly income dropped to Rs 21,633 crore as against Rs 22,525 crore in previous fiscal ended March 2021.
Stock of the bank closed 4.12 per cent up at Rs 17.70 apiece on BSE.