Indian Overseas Bank (IOB) reported standalone net profit for the quarter ended September rose 24% to ₹777 crore from the year-earlier period due to improvement in all financial parameters.

“Having achieved a net profit of ₹777 crore for this quarter, we are confident of touching ₹1,000 crore by March 2025,” MD & CEO Ajay Kumar Srivastava said in a media interaction.

Admitting that garnering CASA deposits had been tough for banks in recent times, he said the CASA ratio stood at 42% and going forward the bank would strive to maintain it at the same level despite challenges.

Interest income rose to ₹6,851 crore from ₹5,821 crore. Non-interest income grew 47% to ₹1,633 crore. Net interest income increased 8% to ₹2,537 crore. There was a slight dip in net interest margin (NIM) by 4bps to 3.08% due to increase in cost of deposits. However, IOB was able to maintain NIM to a larger extent, he said.

Gross non-performing assets (GNPA) declined to 2.72% from 4.74%, while net NPA stood at 0.47% against 0.68%. Provision coverage ratio improved to 97.06% from 96.76%. Capital adequacy of the bank rose to 17.45% from 17%.

Total recovery was ₹1,482 crore, of which ₹1,118 crore came from technically written off accounts, while fresh slippages was ₹251 crore (₹321 crore). IOB has set a cash recovery target of ₹5,500 crore (₹4,500 crore) for FY25.

Total business increased to ₹5,40,801 crore from ₹4,82,006 crore, of which total deposits accounted for ₹3,10,652 crore. Current account savings account deposits increased to ₹1,31,856 crore, accounting for 42% of total deposits.

On branch expansion, he said that the lender had opened 35 branches and 55 would be opened before March.

Asked about the credit growth target, he said they were aiming for 12-13%.