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Indian Overseas Bank Registers 20.89% Growth in Net Profit (₹ 874 Crore) with improved Asset Quality and Strong Performance in Q3FY25
Profitability (Year-on-Year) (Comparison: Q3FY25 vs. Q3FY24)
- Net Profit: Increased by 20.89%, rising to ₹874 crore from ₹723 crore.
- Operating Profit: Grew by 27.30%, reaching ₹2,266 crore compared to ₹1,780 crore.
- Total Income: Improved by 13.07% to ₹8,409 crore from ₹7,437 crore.
- Interest Income: Increased by 15.16% to ₹7,112 crore from ₹6,176 crore.
- Net-Interest Income: Grew by 16.30% to ₹2,789 crore from ₹2,398 crore.
- Return on Assets (ROA): Improved to 0.93% from 0.86%.
- Return on Equity (ROE): Increased to 17.86% from 17.70%.
Asset Quality (Comparison: 31.12.2024 vs. 30.09.2024 and 31.12.2023)
- Gross NPA Ratio: Declined to 2.55% from 2.72% (30.09.2024) and 3.90% (31.12.2023).
- Net NPA Ratio: Reduced to 0.42% from 0.47% (30.09.2024) and 0.62% (31.12.2023).
- Provision Coverage Ratio (PCR): Improved to 97.07% compared to 96.85% as of 31.12.2023.
Recovery:
- Total Recovery: ₹956.65 crore for the quarter ended 31.12.2024.
- Recovery from Written-off Accounts: ₹676.64 crore for the quarter.
Business Highlights (Year-on-Year) (Comparison: 31.12.2024 vs. 31.12.2023):
- Total Business: Expanded by 9.82% to ₹5,42,753 crore from ₹4,94,209 crore.
- Total Deposits: Increased by 9.74% to ₹3,05,121 crore.
- Gross Advances: Grew by 9.93% to ₹2,37,632 crore.
- CASA: Improved by 9.45% to ₹1,32,338 crore, with a CASA Ratio of 43.37%.
- Net Interest Margin (NIM): Stood at 3.33%.
- Credit to Deposit (CD) Ratio: Recorded at 77.88%.
- CRAR: Improved to 16.97%, with Tier-I at 14.33%.
Capital Adequacy
- BASEL III Capital Adequacy Ratio (CRAR): 16.97% as of 31.12.2024, with CET1 at 14.33% and Tier-II at 2.64%.
The bank continues to demonstrate robust financial performance, driven by sustained growth in profitability, improvement in asset quality, and strong capital adequacy. We give below our financial results in detail:
PROFITABILITY (y-o-y)
(Quarter Ended 31.12.2024 Over 31.12.2023)
- Net Profit has increased to ₹874 Crore for the Q3FY25 from ₹723 Crore for the Q3FY24, registering a growth of ₹151 Crore at 20.89% Y-o-Y basis.
- Operating Profit has increased to ₹2,266 Crore for Q3FY25 from ₹1,780 Crore for Q3FY24, registering a growth of ₹486 Crore at 27.30% Y-o-Y basis.
- Total Income improved by 13.07% to ₹8,409 Crore for Q3FY25 from ₹7,437 Crore for Q3FY24.
- Interest Income grew by 15.16% on Y-o-Y basis to ₹7,112 Crore in Q3FY25 as against ₹6,176 Crore for Q3FY24.
- Net-Interest Income grew by 16.30% on Y-o-Y basis to ₹2,789 Crore in Q3FY25 as against ₹2,398 Crore for Q3FY24.
- Return on Assets (ROA) improved to 0.93% for Q3FY25 as against 0.86% for Q3FY24.
- Return on Equity (ROE) also improved to17.86% for Q3FY25 as against 17.70% for Q3FY24.
ASSET QUALITY
(Quarter Ended 31.12.2024 Over 30.09.2024 & 31.12.2023)
- Gross Non-Performing Assets (GNPA) ratiorecorded at 2.55% as of 31.12.2024 as against 2.72% as of 30.09.2024 and 3.90% as of 31.12.2023.
- Net Non-Performing Assets (NNPA) ratio stood at 0.42% as of 31.12.2024 as against 0.47% as of 30.09.2024, 0.62% as of 31.12.2023.
- Provision Coverage Ratio (PCR) improved to 97.07% as of 31.12.2024 from 96.85% as of 31.12.2023. (As on 30.09.2024, PCR was 97.06%).
RECOVERY
Total Recovery for the quarter ended 31.12.2024 stood at ₹956.65 Crore.
Recovery from the written off accounts for the quarter ended 31.12.2024 is ₹676.64 Crore.
BUSINESS HIGHLIGHTS (y-o-y)
(Quarter Ended 31.12.2024 Over 31.12.2023)
- Total Business grew by 9.82% to ₹5,42,753 Crore from ₹4,94,209 Crore.
- Total Deposits raised up by 9.74% to ₹3,05,121 Crore from ₹2,78,046 Crore.
- Gross Advances increased by 9.93% to ₹2,37,632 Crore from ₹2,16,163 Crore.
- Gross Investments increased to ₹1,10,144 Crore from ₹1,00,205 Crore.
- Operating Profit grew by 27.30% to ₹2,266 Crore from ₹1,780 Crore.
- Net Profit up by 20.89% to ₹874 Crore from ₹723 Crore.
- Gross NPA Ratio recorded at 2.55% as on 31.12.2024 as against 3.90% as on 31.12.2023, with a reduction of 135 bps.
- Net NPA Ratio stood at 0.42% as on 31.12.2024 as against 0.62% as on 31.12.2023, with a reduction of 20 bps.
- CASA improved to ₹1,32,338 Crore from ₹1,20,915 Crore, reflecting Y-o-Y growth of 9.45%
- CASA Ratio stood at 43.37% for the quarter ended 31.12.2024.
- Credit to Deposit (CD) Ratio stood at 77.88% for the quarter ended 31.12.2024.
- Net Interest Margin stood at 3.33% for the quarter ended 31.12.2024.
- Provision Coverage Ratio improved to 97.07%, registering an improvement of 22bps.
- CRAR stood at 16.97% of which Tier I is 14.33%.
- Return on Assets (ROA) improved to 0.93%, registering an improvement of 7bps.
- Return on Equity (ROE) improved to 17.86% from 17.70% with an improvement of 16bps Y-o-Y.
CAPITAL ADEQUACY
- BASEL III Capital Adequacy Ratio (CRAR) stood at 16.97% as of 31.12.2024, out of which CET1 is 14.33% and Tier-II is 2.64%.
Key Summary of 31.12.2024 Results
| Particulars | Q3FY25 | Q2FY25 | Q3FY24 | Q-o-Q | Y-o-Y |
| Operating Profit | 2,266 | 2,128 | 1,780 | 6.48% | 27.30% |
| Net Profit | 874 | 777 | 723 | 12.48% | 20.89% |
| Deposits | 3,05,121 | 3,10,652 | 2,78,046 | Reduced by1.78% | 9.74% |
| Gross Advances | 2,37,632 | 2,30,149 | 2,16,163 | 3.25% | 9.93% |
| Gross Investments | 1,10,144 | 1,08,517 | 1,00,205 | 1.50% | 9.92% |
| Business Mix | 5,42,753 | 5,40,801 | 4,94,209 | 0.36% | 9.82% |
| CASA | 1,32,338 | 1,31,856 | 1,20,915 | 0.37% | 9.45% |
| CASA Ratio | 43.37% | 42.44% | 43.49% | 93bps | Reduced by12bps |
| Gross NPA | 6,071 | 6,249 | 8,441 | Reduced by2.85% | Reduced by 28.08% |
| Net NPA | 976 | 1,059 | 1,303 | Reduced by7.84% | Reduced by 25.10% |
| Net Interest Margin | 3.33% | 3.08% | 3.12% | 25bps | 21bps |
| Gross NPA Ratio | 2.55% | 2.72% | 3.90% | Reduced by17bps | Reduced by135bps |
| Net NPA Ratio | 0.42% | 0.47% | 0.62% | Reduced by5bps | Reduced by 20bps |
| Cost to Income Ratio | 44.55% | 48.97% | 51.35% | Reduced by442bps | Reduced by680bps |
| PCR | 97.07% | 97.06% | 96.85% | 01bps | 22bps |
| CRAR | 16.97 | 17.45% | 16.80% | Reduced by48bps | 17bps |
| RoE | 17.86% | 16.90% | 17.70% | 96bps | 16bps |
| CD Ratio | 77.88% | 74.09% | 77.74% | 379bps | 14bps |
| RoA | 0.93% | 0.82% | 0.86% | 11bps | 7bps |
