Indian Overseas Bank's (IOB) net profit for the June quarter soared 76% year-on-year, backed by rise in earnings and higher recovery.
Fall provisions also helped.The bank's asset quality improved with gross non-performing assets ratio falling to 1.97% at the end of June from 2.14% three months back.
The credit cost stood 0.29% as compared with 0.33% over the same period.The net profit for the quarter stood at Rs 1111 crore as compared with Rs 633 crore in the year ago period.Its net interest margin for the quarter was 3.04%, down from the previous quarter's 3.58%.
Net interest income rose 12.5% at Rs 2746 crore while other income jumped 43% at Rs 1481 crore.Live EventsIOB's pre-provision operating profit rose 41% year-on-year at Rs 2358 crore against Rs 1676 crore.
Provisions and contingencies were lower at Rs 844 crore against Rs 938 crore.The bank management said that recovery from bad debt was higher in the quarter under review boosting the other income.
Total recovery stood at Rs 851 crore as compared with Rs 582 crore in the year ago period.IOB's gross advances rose 14.05% year-on-year to Rs 2.62 lakh crore while total deposits rose 10.75% to Rs 3.31 lakh crore.The bank is planning to raise Rs 4000 crore by selling shares through qualified institutional placement to bring down the government holding to around 90% by this year from 94.61% at present.