: IOB to enhance lending in retail, MSME, agri, corporate sector in FY23 #FinanceIndia #StockMarketNEWS IOB to enhance lending in retail, MSME, agri, corporate sector in FY23 New Delhi, June 27 (KNN)

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IOB to enhance lending in retail, MSME, agri, corporate sector in FY23 #FinanceIndia #StockMarketNEWS
IOB to enhance lending in retail, MSME, agri, corporate sector in FY23 New Delhi, June 27 (KNN) The state-owned Indian Overseas Bank (IOB) aims to increase advances in retail, MSME, corporate and agricultural loans in FY23.

With the objective to achieve its goals, it has brought down the stressed assets on its balance sheet through sustained and targeted efforts.

Partha Pratim Sengupta, Managing Director & Chief Executive Officer, Indian Overseas Bank in the annual report FY22, told shareholders that the Covid-19 pandemic across the globe resulted in the decline of economic activity and movement in the financial market.

"In this situation, Bank geared itself to meet the challenges and has been evaluating the situation on an ongoing basis and has pro-actively provided against the challenges of likely stress on the banks assets as required. Bank’s management is not expecting any significant impact on Bank’s liquidity or profitability,” he added.

In the fiscal year ended March 2022, IOB witnessed doubling of its net profit at Rs 1,709 crore, as against Rs 831 crore in the previous fiscal year, as the bank improved on its asset quality through a multi-pronged strategy and focussed recovery initiatives.

The asset quality of Public Sector Banks (PSBs) are on an improving trend though some loans are classified as restructured loans under pandemic permitted RBI schemes.

Sengupta said that “IOB brought down the gross NPAs ratio from 11.69 per cent in FY21 to 9.82 per cent by as of March 31, 2022 through multi-pronged and focussed recovery initiatives.”

On the net NPAs front, it was brought down to Rs 3,825 crore (2.65 per cent) from Rs 4,578 crore (3.58 per cent).

For next fiscal year, credit growth will pick up to 10 per cent and sees gross non-performing asset (GNPA) ratio at 6.1 per cent.

The provision coverage ratio improved substantially at the end of March 2022, to 91.66 per cent from 90.34 per cent, one of the highest in industry.

As a result, the bank could register a net profit to the tune of Rs 552 crore for Q4 FY21-22 and Rs 1,709 crore for the whole FY 21-22.

Bank concentrated on expansion of retail, agri, MSME segment advances especially housing loan and jewel loan which is evident in growth of RAM share to domestic advances reaching to 73.35 per cent as of 31st March 2022.

The CASA (current account savings account) grew to Rs 113,877 crore at the end of FY22 from Rs 102,165 crore in the year-ago period, registering a growth of 11.46 per cent. (KNN Bureau)