IOB net profit jumps over 26% on NPA plunge

MUMBAI: A significant improvement in slippages and asset quality coupled with a spike in non-interest income have helped the state-run Indian Overseas Bank (IOB) to book a 26.60 percent on-year growth in net profit at Rs 633 crore in the June quarter compared to Rs 500 crore it logged in the same period last fiscal.

Ajay Kumar Srivastava, the chief executive of the Chennai-based lender, attributed the robust growth to the bank’s strong operational efficiencies and strategic initiatives.

The asset quality has shown a marked improvement with slippages coming down to Rs 277 crore during the quarter, taking the slippage ratio down by 18 basis points to 0.13 percent, Srivastava told reporters during the earnings concall.