Indian Overseas Bank Q4FY22 net profit up 21.5 YoY to Rs 552 cr; FY22 doubles to Rs 1,709 crore

However, the bank doubled its net profit to Rs 1,709 crore in FY22 from Rs 831 crore in FY21.

Its Gross NPA reduced by Rs 127 crore to Rs 15,299 crore in Q4FY22 from Rs 16,323 crore in Q3FY21.

GNPA ratios reduced to 9.82 percent from 10.40 percent quarter-on-quarter. The provision coverage ratio improved to 91 .66 percent.

Net NPA dropped from Rs 45,78 crore in the fourth quarter of FY 21 to Rs 38,25 crore in the same quarter of FY22.

Net NPA ratio has stood at 2.65 percent which is within prescribed RBI guidelines, the bank said.

Total slippage stood at Rs 981 crore in Q4FY22. Slippages, in banking parlance, is when a bank's assets become a non-performing asset (NPA) owing to the borrower not paying interest for over 90 days.

Indian Overseas Bank MD and CEO Partha Pratim Sengupta said the bank had three targets in FY22-- to come out of prompt corrective action (PCA), double its profits, and bring down GNPA to a single digit.

"We have achieved all the three targets. We were able to come out of PCA. Our profits have doubled in FY22 compared to FY21. After we were placed out of PCA in September 2021, we presented two balance sheets with profit for the two consecutive quarters of FY22. We were also able to bring down our GNPA to a single digit of 9.82 percent," he said.

Net lnterest Margin (NIM) stood at 2.41 percent for Q4FY22.

Total deposits increased to Rs 2,62,159 crore as on March 31, 2022 as against Rs 2,40,288 crore as on March 31, 2021.

The bank has reduced the concentration of Bulk Deposits and high-cost deposits and increased Retail Term Deposits to have a stable and sustainable deposit profile and reduce the cost of funds. 

The bank's Gross Advances stood at Rs 1,55,801 crore as on March 31, 2022, as against Rs 1,39,597 crore as on March 31, 2021.

The bank has evolved a policy of not taking fresh exposures in stressed sectors, below hurdle rated accounts and BB and below rated accounts. The bank has also exited from accounts in the stressed sectors, wherever feasible.

The provision coverage ratio improved to 91.66 percent in the period under review while it was 90.34 percent under the same quarter in FY21.

CASA of the bank improved to 43.44 percent as on March 31, 2022 as against 42.52 percent as on March 31, 2021.

Total CASA has increased from Rs 1,02,165 crores os on 31.03.2021 to Rs l,l3,877 crores as on 31 .03.2022, and registered 11.46 percent over previous year.

Total business stood at Rs 4,17,960 crore as on March 31, 2022, as against Rs 3,79,88s crore as on March 31, 2022 (an increase of 10 percent). 

Total income for the year ended 31.03.2022 stands at Rs 21,633 crore os against Rs 22,525 crore for the previous year.

lnterest income stands at Rs 16,730 crore for the year ended 31.03.2022.

Other income stands at Rs 4,903 crores for the year ended 31 .03.2022.

Total Expenditure stands of Rs 4,104 crore for the year ended March 31, 2022 which is reduced as against Rs 16,629 crores for the year ended March 31, 2021.

Bank's capital-to-risk weighted assets ratio (CRAR) stood at 13.83 percent in Q4FY22.

Recovery in NPA accounts for the year ended 31 .03.2022 is Rs 1,385.82 crores.

It will be another couple of years till the bank announces dividend for shareholders, said Partha Pratim Sengupta.

He added that the increase in profits has been partly due to recovery in NPA accounts as well as cash recoveries.

On expansion, Sengupta said there will be fewer brick and mortar branches as the bank's focus is mainly on expansion through digitalisation.

"Apart from the strategic requirements, we are not looking to open more physical branches. The bank is taking a massive dive into digitalisation and that has been our focus since last one year,"  he said.

Further, the bank's board has approved raising Rs 1,000 crore in the FY23, he said.