Indian Overseas Bank Q3 Results: Profit Climbs 21% YoY, Stock Up 6%
Q3 Profit Surge
State-owned Indian Overseas Bank (IOB) reported a consolidated net profit of ₹875.27 crore for the third quarter ended December 2024, a nearly 21% year-over-year (YoY) increase compared to a profit of ₹724.14 crore in the corresponding quarter of the previous year.
Stock Performance
Shares of the public sector undertaking (PSU) climbed as much as 6% on Monday, reaching an intraday high of ₹53.66 per share on the BSE, after the company released its December quarter results.
Net Interest Income (NII)
Indian Overseas Bank’s net interest income (NII), which is interest earned minus interest expended, climbed 16% YoY to ₹2,789 crore in the third quarter ended December 31, from ₹2,398 crore in the same quarter last year.
Asset Quality Improvement
On the asset quality front, the lender said its gross non-performing assets (GNPA) ratio improved to 2.55% in the third quarter of fiscal 2025, compared to 2.72% in the previous quarter of the same financial year. Similarly, net non-performing assets improved to 0.42% in the December quarter, from 0.47% in the second quarter of FY25.
Provisions and Gross NPAs
In the December quarter of FY25, provisions stood at ₹1,028.6 crore, compared to ₹701.42 crore in the same quarter last year, and ₹1,146.3 crore in the September quarter of fiscal 2025. The lender’s gross non-performing assets (GNPA) improved to ₹6,070.5 crore in the third quarter of FY25, from ₹6,249.07 crore in the previous quarter of the same financial year.
Government Stake
Indian Overseas Bank (IOB) disclosed in its Q3 results that the Government of India held a 96.38% stake in the bank as of December.
Stock Returns
Over the past year, the PSU stock has delivered returns of more than 19%, despite recording an 18% decline in the last six months.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
0 comments:
Post a Comment