Chennai-based public sector lender Indian Overseas Bank (IOB) on Friday reported a web revenue of Rs 148 crore for the second quarter of the present monetary yr. It had posted a Rs 2,254-crore web loss within the corresponding quarter of the earlier fiscal. Total revenue stood at Rs 5,430 crore, in opposition to Rs 5,024 crore, registering a progress of 8%.
Speaking to mediapersons by a digital press convention, Partha Pratim Sengupta, MD & CEO, stated the financial institution has made revenue for 3 quarters in a row, using on good restoration and decreased unhealthy loans, leading to decrease provisioning.
“The bank has made marked improvement on all parameters, resulting in clocking profit of Rs 148 crore. We have made exit from stressed sectors and corporate pie had been reduced to negligible portion of the loan book, as it continues to focus on retail, agri and MSME (RAM) sectors. As of now, our RAM share constitutes around 74% of loan book, and going forward, we will ideally have 80% RAM and 20% corporate split,” he stated.
The web curiosity margin stood at 2.18%, in opposition to 1.86% within the corresponding quarter final fiscal, whereas curiosity revenue stood at Rs 4,363 crore, in contrast with Rs 4,276 crore.
Sengupta stated IOB will strategy the regulator for bringing the financial institution out of the immediate corrective motion (PCA) framework after evaluating the Covid-19 influence on its stability sheet. “We had held internal discussions on this, and we want to wait till March before approaching the RBI for revoking the PCA. We want to evaluate the Covid-19 impact and proceed further. Till then, our focus will be on strengthening the balance sheet.”
The gross NPA received lowered to 13.04%, in comparison with 20%, whereas web NPA stood at 4.3%, in contrast with 9.84%. IOB’s provision protection ratio improved to 89.36%, in opposition to 75.85%.
CASA of the financial institution improved to 40.26%, in opposition to 38.067%. Gross advances stood at Rs 1,35,469 crore, in contrast with Rs 1,43,350 crore as on September 30, 2019.