Shares of state-run Indian Overseas Bank Ltd. surged as much as 4% on Wednesday, April 29, in response to its March quarter results, which showed improvement in its profitability and better asset quality.Net Interest Income (NII) or core income for the quarter grew by 11.1% from the same quarter last year to ₹3,470 crore from ₹3,123 crore earlier.
Net profit for the period grew by 43.2% from the year-ago period to ₹1,505 crore. Profitability was aided by lower provisions. Provisions for the quarter declined to ₹1,005 crore from ₹1,235 crore during the December quarter.
Asset quality saw improvement on a sequential basis with Gross NPA improving to 1.42% from 1.54%, while Net NPAs bettering to 0.21% from 0.24% earlier.In absolute terms, Gross NPA stood at ₹4,409 crore from ₹4,529 crore in December, while net NPA improved to ₹637 crore from ₹707 crore earlier.
Shares of Indian Overseas Bank are now trading 2.8% higher after the earnings announcement at ₹35.94. The stock has risen 15% higher in the last one month.
