In This Article:
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Business Mix: INR561,000 crores, a year-on-year growth of 11.30%.
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CASA Growth: INR136,161 crores, year-on-year growth of 8.49%.
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Total Deposits: INR311,939 crores, growth of 9.11%.
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Gross Advances: INR250,019 crores, year-on-year growth of 14.15%.
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Operating Profit: INR8,688 crores, growth of 28.44%.
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Net Profit: INR3,335 crores, year-on-year increase of 25.56%.
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Provision Coverage Ratio: 97.30%, up from 96.85% last year.
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Capital Adequacy Ratio: 19.74%, up from 11.50%.
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Total Income: INR33,636 crores, increase of 13.36%.
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Net Interest Income: INR3,123 crores, year-on-year growth of 13.03%.
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Cost of Deposit: 5.08%.
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Return on Assets: 1.12%, first time crossing 1%.
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Return on Equity: 15.28%.
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Cost to Income Ratio: 47.14%.
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Gross NPA: INR6,794 crores.
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Net NPA: 0.37%.
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Total Recoveries: INR9,992 crores for the quarter.
Release Date: May 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Indian Overseas Bank (BOM:532388) achieved a business mix of INR561,000 crores, marking a significant milestone by crossing INR550,000 crores for the first time with a year-on-year growth of 11.30%.
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The bank reported a net profit increase of 25.56% year-on-year, reaching INR3,335 crores.
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Operating profit grew by 28.44% to INR8,688 crores, showcasing strong operational performance.
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The provision coverage ratio improved to 97.30%, indicating robust risk management practices.
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The bank's capital adequacy ratio increased to 19.74%, well above the mandatory requirement of 11.50% set by the RBI, reflecting strong capital management.
Negative Points
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Fresh slippages increased to INR2,756 crores, primarily due to the MTNL account becoming an NPA, which raised concerns about asset quality.
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The bank faces a significant disputed tax liability of INR5,933 crores, which remains unresolved and could impact future financials.
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The cost of deposits increased to 5.08%, which may pressure net interest margins if not managed effectively.
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The MSME segment's NPA remains close to 3%, indicating potential stress in this sector.
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The bank's international operations are relatively small, with limited growth prospects compared to domestic operations.
Q & A Highlights
Q: Can you elaborate on the fresh slippages that have increased to INR2,756 crores? A: Ajay Srivastava, CEO, explained that the increase was primarily due to the MTNL account, which became an NPA in February, contributing INR2,332 crores to the slippages. Excluding this, the total slippage for the year was INR1,200 crores, lower than the previous year's INR1,500 crores.