IOB Q4 results: posted yearly profit of Rs. 831 crores

New Delhi: Indian Overseas Bank, an Indian government-owned bank has posted a yearly net profit of Rs.831 crores for the year ended 31.03.2021 after 6 years.

 

• The Bank plans to come out of Prompt Corrective Action by focusing on Recovery, low-cost deposits, and less capital-consuming advances.
• Profit for the quarter ended 31.03.2021 recorded at Rs.350 crores as against Rs.213 crores for the quarter ended 31.12.2020.
• Net NPA has stood at 3.58% which is within prescribed RBI guidelines.
• During the quarter GNPA reduced by Rs.430 crore.  GNPA ratios  reduced to 11.69%  from 14.78%  QoQ
• The provision coverage ratio improved to 90.34%

 

 

Performance Highlights for the Financial Year ended March 31, 2021

 

1. CASA of the Bank improved to 42.52% (Domestic 42.70%) as on 31st March 2021 as against 40.26% (Domestic 40.67%) as on 31st March 2020. Total CASA has increased from Rs.89,751 crores as on 31.03.2020 to Rs.1,02,165 crores as on 31.03.2021, and registered 13.83% growth as at 31st March ’21 over 31st March ‘20.

 

2. Total business stood at Rs.3,79,885 crore as on 31st March 2021 as against Rs.3,57,723  crore as on 31st March 2020 (Increase of 6.20%).

 

3. Total deposits increased to Rs.2,40,288 crore as on 31st March 2021 as against Rs.2,22,952 crore as on 31st March 2020. The Bank has reduced the concentration of Bulk Deposits and high-cost deposits and increased Retail Term Deposits to have a stable and sustainable deposit profile and reduce the cost of funds.

 

4. Gross Advances stood at Rs.1,39,597 crore as on 31st March 2021 as against Rs.1,34,771 crore as on 31st March 2020. The Bank has evolved a policy of not taking fresh exposures in stressed sectors, below hurdle rated accounts, and BB and below rated accounts. The Bank has also exited from accounts in the stressed sectors, wherever feasible.

 

5. Operating Profit for the year ended 31.03.2021 stood at Rs.5,896 crore as against of Rs.3,534 crore on 31.03.2020 which is an increase of 67% over the previous year.

 

6. Total income for the year ended 31.03.2021 stands at Rs.22,525 crore as against Rs.20,766 crore for the previous year (2019-20)

 

7. Interest income stands at Rs.16,966 crore for the year ended 31.03.2021. 

 

8. Other income stands at Rs.5,559 crores for the year ended 31.03.2021.

 

9. Total Expenditure stands at Rs.16,629 crore for the year ended 31st March 2021 which is reduced as against Rs.17,232 crores for the year ended 31st March 2020.

Cost to Income decreased from 59.21% as at March ’20 to 48.54% as at March ’21.

 

10. Recovery in NPA accounts for the year ended 31.03.2021 is Rs.6,831 crores.  

-  GNPA reduced from 14.78% as at March ’20 to 11.69% as at March ’21.

-  NNPA reduced from 5.44% as at March ’20 to 3.58% as at March’21

-  Provision Coverage Ratio (PCR) improved from 86.94% as at March ’20 to 90.34% as at March ‘21

 

 

 

Performance Highlights for the Quarter ended March 31, 2021 QoQ (Sequential) ie  Dec,31.2020

 

1. Total business stood at Rs.3,79,885 crore as on 31st March 2021 as against Rs.3,71,585 as on 31st December 2020.

 

2. Total deposits stood at Rs.2,40,288 crore as on 31st March 2021 as against Rs.2,34,116 as on 31st December 2020.

 

3. CASA of the stood at 42.52% as on 31st March 2021 as against 40.93% as on 31st December 2020.

 

4. Gross Advances stood at Rs.1,39,597 crore as on 31st March 2021 as against Rs.1,37,469 crore as on 31st December 2020. Bank focused on re-aligning its loan book for efficient capital utilization.

 

5. Operating Profit stood at Rs.1,724 crore for quarter ended 31st March 2021 as against Rs.1,731 crore for the quarter ended 31st December 2020.

 

6. Net profit for the quarter ended 31st March 2021 is Rs.350 crore as against Rs.213 crore as on 31st December 2020.

 

7. Total income is Rs.6,074 crore for the quarter ended 31st March 2021 as against Rs.5,787 crore for the quarter ended 31st December 2020.

 

8. Interest income stood at Rs.4,057 crore for the quarter ended 31st March 2021 as against Rs.4,244 crore for the quarter ended 31st December 2020.

 

9. Other income increased to Rs.2,016 crore for the quarter ended 31st March 2021 as against Rs.1,543 crore for the quarter ended 31st December 2020.

 

10. Total Expenditure stood at Rs.4,349 crore for the quarter ended 31st March 2021 as against Rs.4,055 crore for the quarter ended 31st December 2020.                            

               

11. NPA MANAGEMENT: Gross NPA as at 31st March 2021 stood at Rs.16323 crore as against Rs.16,753 crore as at 31st December 2020.

 

12.  Recovery made Rs.3934 crore for the quarter ended March ’21 as against Rs.1625 crore as at 31st December 2020.

 

13. Net NPA as at 31st March 2021 and stood at Rs.4,578 crore with ratio of 3.58% as against Rs.3,905 crore with ratio of 3.13% as on 31st December 2020.

 

14. Provision Coverage Ratio stood at 90.34% as on 31st March 2021 as against 91.91% as on 31st December 2020.

 

 

 

Performance Highlights for the Quarter ended March 31, 2021 - Q4 March’21 over Q4 March‘20

 

1. Deposits stood at Rs.2,40,288 as on 31.03.2021 as against Rs.2,22,952 on 31.03.2020.

 

2. Gross Advances stood at Rs.1,39,597 crore as on 31st March 2021 as against Rs.1,34,771 crore as on 31st March 2020.

 

3. Total business stood at Rs.3,79,885 crores  as on 31.03.2021 as against Rs.3,57,723 crores  on 31.03.2020.

 

4. Operating Profit for quarter ended 31st March 2021 registered growth of 44% and stood at Rs.1,724 crore as against Rs.1,197 crore for the quarter ended 31st March 2020.

 

5. Net Profit for the quarter ended 31st March 2021 stood at Rs.350 crore as against Rs.144 crore for the quarter ended 31st March 2020.

 

6. Total income stood at Rs.6,074 crore for the quarter ended 31st March 2021 as against Rs.5,537 crore for the quarter ended 31st March 2020.

 

7. Interest income stood at Rs.4057 crore for the quarter ended 31st March 2021 as against Rs.4,442 crore for the quarter ended 31st March 2020.                                                                                                      

 

8. Other income increased to Rs.2,016 crore for the quarter ended 31st March 2021 as against Rs.1,095 crore for the quarter ended 31st March 2020. 

 

9. Total Expenditure for the quarter ended 31st March 2021 continued to remain at Rs.4,350 crores.  Operating expenses stood at Rs.1,695 crore for the quarter ended 31st March 2021 as against Rs.1,430 crore for the quarter ended 31st March 2020.

 

10. NPA MANAGEMENT: Gross NPA as at 31st March 2021 stood at Rs.16,323 crore with ratio of 11.69% as against Rs.19,913 crore with ratio of 14.78% as at 31st March 2020.

 

11. Recovery made Rs.3934 crores for the quarter ended March ’21 as against Rs.2377 crores for the quarter ended 31st March 2020.  

 

12. Net NPA is contained to Rs.4,578 crore with ratio of 3.58% as at 31st March ‘21 as against Rs.6,603 crore with ratio of 5.44% as on 31st March ‘20.

 

13. Provision Coverage Ratio is improved to 90.34% as on 31st March 2021 as against 86.94% as on 31st March 2020.

 

 

 CAPITAL ADEQUACY RATIO (CRAR):

Particulars	Basel III as on 31.03.2021	Regulatory Requirement
CET 1	12.91%	5.50%
Tier I	12.91%	7.00%
Tier II	2.41%	2.00%
Total CRAR	15.32%	9.00%*

* Excluding CCB

 

 

Total Capital includes Capital infusion by GOI of Rs.4100 cr received during FY 2020-21.

 

 KEY FINANCIAL RATIOS:

 

 

Credit Deposit Ratio is 58.10% as on 31.03.2021 as against 60.45 % as on 31.03.2020

 

 Average Cost of Deposit is 4.70% for the year ended 31.03.2021 as against 5.33% for the year ended 31.03.2020.

 

Average Yield on Advances is 8.00% for the year ended 31.03.2021 as against 7.01% for the year ended 31.03.2020.

 

Cost to Income Ratio is 48.54% for the year ended 31.03.2021 as against 59.21% for the year ended 31.03.2020.

 

 Net Interest Margin is 2.39% for the quarter ended 31.03.2021 as against 2.03% for the year ended 31.03.2021.

 

 

 

CAPITAL INFUSION BY GOVERNMENT OF INDIA

 

On 31.03.2021, the Bank has received Rs.4100 crores as capital infusion by the Government of India for which the Bank has allotted 246,54,23,932 equity shares of Rs.10/- each for cash at Issue Price of Rs.16.63 per equity share (including premium of Rs.6.63 per equity share) on preferential basis, to Government of India. Upon allotment made, GOI’s shareholding increased to 96.38% from 95.84%.

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