State-owned Indian Overseas Bank (IOB) on Wednesday reported 30 per cent rise in net profit at 723 crore for December quarter 2023-24, on the back of improvement in core income and reduction in bad loans.

Indian Overseas Bank saw a 30 percent spike in net profit.

The Chennai-based lender had earned a net profit of 555 crore in the same quarter a year ago.

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Operating profit of the bank improved to 1,780 crore as against 1,540 crore in December 2022.

Total income increased to 7,437 crore during the quarter under review from 6,006 crore in the same period last year, IOB said in a regulatory filing.

Interest income also rose to 6,176 crore over 5,056 crore for the quarter ended December 2022.

During the quarter, the bank had done total cash recovery of 327 crore as against 460 crore in the third quarter of the previous fiscal.

On the asset quality front, the bank’s gross Non-Performing Assets (NPAs) declined to 3.90 per cent of gross loans by the end of December 2023 from 8.19 per cent a year ago.

Similarly, net NPAs or bad loans came down to 0.62 per cent as compared to 2.43 per cent in FY22.

As a result, provisions for bad loans declined to 367 crore from 711 crore a year ago.

The bank’s Provision Coverage Ratio stood at 96.85 per cent at the end of third quarter as against 91.34 per cent as on December 31, 2022.

Its Capital Adequacy Ratio improved to 16.80 per cent from 15.16 per cent at the end of the December quarter of FY22.

Current Account Savings Account (CASA) as percentage of total deposits declined marginally to 43.49 per cent.

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