IOB's profit surges 76% on other income boost

INDIAN OVERSEAS BANK'S (IOB) net profit rose 76% year-on-year to ₹1,111 crore in the April-June quarter due to a fall in provisions and growth in other income.

- KSHIPRA PETKAR

The bank's other income grew by 43.4% y-o-y as the bank sold priority sector lending certificates worth ₹200 crore and also recovered ₹500 crore from written-off accounts. Sequentially, however, other income fell over 6%.

Net interest income rose 13% on-year to ₹2,746 crore. However, on a sequential basis, it fell by 12%. Net interest margin (NIM) moderated to 3.04% in April-June from 3.56% a quarter ago. Due to the RBI repo rate cuts of 100 basis points since February, the bank expects a 5-10 bps hit on NIM in the next quarter, but is hopeful that after Q4, NIM will be at 3.25%.