Lower expenses also aid lender
Public sector lender Indian Overseas Bank (IOB) has reported a standalone net profit of ₹121 crore for the first quarter ended June against a net loss of ₹342 crore in the year-earlier period, on a rise in treasury gains and reduction in interest and operational expenditure.
“For two quarters in a row, we have been posting profit,” said Partha Pratim Sengupta, MD & CEO at a media interaction.
“Despite COVID-19 impact, we were able to maintain our profit levels,” Mr. Sengupta added.
“In the last two quarters, the bank made a provision of ₹401 crore towards COVID-19. We plan to recover bad debts worth ₹1,000 crore each for the next three quarters,” he said.
Going forward, IOB would focus on digitalisation to attract millennials and GenY, drive MSME business and contain non-performing assets.
Total income rose to ₹5,234 crore (₹5,006 crore) mainly on an increase in treasury income.
Provisions and contingencies contracted to ₹970 crore (₹1,170 crore).
Gross NPAs declined to ₹18,291 crore (₹33,262 crore) and net NPAs to ₹6,081 crore (₹14,174 crore).
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