Indian Overseas Bank (IOB), a public sector bank in India, performed well with higher profits, better loan quality, and stronger margins. The bank made a profit of ₹1,226 crore in the second quarter, which is 58% more than what it earned in the same period last year. This happened mainly because the bank set aside less money (provisions) for possible future losses.
Key Highlights (July–Sept Quarter):
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Profit Growth – The bank made a net profit of ₹1,226 crore, which is 58% higher than the profit it made in the same period last year (₹777 crore). This means the bank is earning much more than it did last year.
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Interest Income Up – The Net Interest Income (NII) – the money the bank makes from giving out loans – grew 21%, from ₹2,537 crore to ₹3,059 crore.
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Better Loan Quality (Lower NPAs) – The bank has improved how it handles bad loans (loans that don’t get paid back).
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Gross NPA (total bad loans) came down from 1.97% to 1.83%.
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Net NPA (actual loss to bank) came down from 0.32% to 0.28%.
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In rupee terms, this means fewer bad loans compared to the previous quarter.
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Lower Provisions (Money Set Aside for Bad Loans)
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The bank had to set aside less money for bad loans this time – ₹672 crore, compared to ₹844 crore in the previous quarter. This helped boost profits.
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IOB is doing better because more of its loans are being repaid on time, it’s making more money from lending, and it doesn’t need to worry as much about bad loans. Indian Overseas Bank posted strong earnings, with higher profit, better loan quality, and lower provisions.
