State-owned Indian Overseas Bank (IOB) on Thursday reported a 24 per cent increase in its profit to Rs 808 crore for the fourth quarter ended March 2024. The Chennai-based bank had earned a net profit of Rs 650 crore in the same quarter a year ago.

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The total income increased to Rs 9,106 crore during the quarter under review as against Rs 6,622 crore in the same period last year, IOB said in a regulatory filing. Interest income grew to Rs 6,629 crore during the period under review from Rs 5,192 crore in the corresponding quarter a year ago.

On the asset quality side, the bank's Gross Non-Performing Assets (NPAs) improved to 3.10 per cent of gross advances as of March 31, 2024, from 7.44 per cent by the end of March 2023. Net NPAs also declined to 0.57 per cent of the advances from 1.83 per cent at the end of 2023.

As a result, provision for bad loans eased to Rs 409 crore as against Rs 1,028 crore earmarked during the same quarter a year ago. The Provision Coverage Ratio of the bank stood at 96.85 per cent compared to 92.63 per cent at the end of March 2023.

Net Interest Margin improved to 3.28 per cent as against 2.93 per cent as of March 31, 2023. For the financial year ended March 2024, the bank's net profit increased to Rs 2,656 crore compared to Rs 2,098 crore in the previous fiscal.

Capital Adequacy Ratio (CRAR) improved to 17.28 per cent over 16.10 per cent on March 31, 2023.