Latest news with #AjayKumarSrivastava
Time of India
5 days ago
- Business
- Time of India
Indian Overseas Bank confident of maintaining over Rs 1,000 cr net profit in this FY: MD & CEO
Public sector Indian Overseas Bank was confident of maintaining its over Rs 1,000 crore net profit in the coming quarters. The city-headquartered bank had registered its first ever highest net profit of Rs 1,051 crore in the January-March 2025 quarter. Explore courses from Top Institutes in Select a Course Category Technology CXO Data Science others Finance MCA Cybersecurity healthcare Digital Marketing Management Project Management Others Degree Healthcare Design Thinking Public Policy MBA PGDM Product Management Data Analytics Artificial Intelligence Leadership Data Science Operations Management Skills you'll gain: Duration: 12 Weeks MIT xPRO CERT-MIT XPRO Building AI Prod India Starts on undefined Get Details "Exactly. One hundred per cent sure. We are very confident of maintaining this and growing it from here. If you see our net profits figure over the last two years, quarter on quarter, it is increasing. The graph has been very consistent," the bank's Managing Director and CEO Ajay Kumar Srivastava said. He was responding to a query from PTI on whether the bank was confident of maintaining the growth in the net profit during this financial year . He said, "in the fourth quarter of the last financial year (January-March 2025), the bank reported its highest ever net profit of Rs 1,051 crore and in June 2025 quarter, supposed to be a lean quarter, from that Rs 1,051 crore we have grown to over Rs 1,111 crore net profit, another highest ever net profit for the bank." Live Events "We are very confident of maintaining it and growing further," he added. For the April-June 2025 quarter, Indian Overseas Bank reported a 76 per cent jump in net profit to Rs 1,111 crore as compared to Rs 633 crore registered in the same quarter of last financial year. To a query on the outlook for the year, Srivastava said he expected the bank to grow at 12 per cent on overall business segment during the current financial year, similar to last year. "Last year, it was around 12 per cent business growth . That is very comfortable to maintain. That is the minimum also. Beyond that (12 per cent) also we are expecting to grow (in this financial year)," he said. On the target recovery for this year, the Managing Director said, "In the beginning of the financial year we gave a guidance of Rs 4,500 crore as recovery for the entire financial year." "Out of that in Q1, we have done Rs 851 crore and remaining we are very very comfortably doing it. In fact, if you see our recovery numbers of last two years, we have made recovery of around Rs 4,500 to Rs 5,000 crore every year," he said. Asked how much credit growth was expected during this financial year, he said it is expected to be around 12-13 per cent during the current financial year. To another query whether the bank has planned to open a branch in Gift City, Gandhi Nagar, he replied that the bank is in the process of obtaining approvals to open a branch in that city. "So, in Gift City (Gandhi Nagar, Gujarat), we do not have a branch as such. We are in the process of getting approvals and depending on the approvals, we will be opening a branch. It is in our priority and we want to have one branch as early as possible," he said. On the performance of gold loan portfolio , he said it has been a consistent portfolio for the bank and every year, the bank has been witnessing a 37-38 per cent growth under this segment. "This year again, we will be growing (around 37-38 per cent). That is one more important activity in the state of Tamil Nadu," he noted. According to Srivastava, the bank has planned to raise Rs 4,000 crore during the current financial year, thereby, the Government of India shareholding in the bank is expected to come down to 90 per cent from the current 94 per cent. "This fundraiser we expect to happen in Q3 of this financial year. It may happen in one or two tranches. After this (fund raise,) the government of India shareholding will come down to 90 per cent," he remarked. Economic Times WhatsApp channel )
News18
6 days ago
- Business
- News18
Indian Overseas Bank to raise Rs 4,000 cr this financial year: MD & CEO
Chennai, Jul 18 (PTI) Public sector Indian Overseas Bank has drawn up plans to raise Rs 4,000 crore during this financial year through various instruments, including Qualified Institutional Placement (QIP), a top official said on Friday. With the proposed plan to fund raise, the Government of India's shareholding in the Chennai-headquartered bank is expected to come down to 90 per cent from the current 94 per cent, the bank's Managing Director and CEO Ajay Kumar Srivastava said here. 'Last year, we raised about Rs 1,440 crore in March. This year we are looking for about Rs 4,000 crore to raise. For that we are talking to various authorities for their approval," he told reporters after declaring the financial performance of the bank. Asked about the kind of instruments that would be used for the fund raise, he said, 'It will be a mix. Most of it will be through QIP (Qualified Institutional Placements). With this, Government of India shareholding will come down to 90 per cent from 94 per cent." To another query on when the fund raise was expected to occur, Srivastava said, 'We expect it will happen by Q3 end or Q4." Indian Overseas Bank reported a 76 per cent jump in net profit to Rs 1,111 crore during the April-June 2025 quarter. The bank had earned a net profit of Rs 633 crore in the same quarter of the previous financial year. Total income of the bank during the June quarter rose to Rs 8,866 crore from Rs 7,568 crore recorded in the same quarter of last financial year. Asked on the drivers for the increase in net profit, he said, the driver is interest income. 'We have been doing quality lending at a healthy rate of interest. So that is one. The net interest income has increased. We have been able to control our expenses to a certain extent and the other income has increased for the bank." he said. 'The third most crucial part is less provisioning requirement and all these factors combined have given 75 per cent increase in net profit", he said. PTI VIJ VIJ KH view comments First Published: July 18, 2025, 19:45 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
The Hindu
6 days ago
- Business
- The Hindu
IOB Q1 net profit surges 75.57% on higher income
State-run lender Indian Overseas Bank's (IOB) first quarter net profit increased 75.57% to ₹1,111 crore from ₹633 crore in the same period last year. 'The growth in net profit was driven by various factors including growth in net interest income, other income,' IOB's Managing Director and CEO Ajay Kumar Srivastava told reporters. The bank's net interest income grew 12.50% to ₹2,746 crore, while other income increased 43.36% to ₹1,481 crore in the first quarter of 2025-2026. Impacted by the repo rate cut by the Reserve Bank of India (RBI), the bank's net interest margin (NIM) declined 2 basis points to 3.04% in the three months ended June 2025 from 3.06% in the comparable period last year. NIMs will normalise by the third or fourth quarter, Mr. Srivastava said. IOB's total deposits grew by 10.75% to ₹3,30,792 crore, while gross advances increased by 14.05% to ₹2,62,421 crore. The bank was able to maintain its Current Accounts and Savings Accounts (CASA) at 43.78% of total deposits, Mr. Srivastava said. IOB's retail, agri and MSME loan book grew 24.69% to ₹1,92,597 crore, accounting for 78.92% of its total advances. Mr. Srivastava said the credit demand from corporates have been subdued and the trend is expected to continue. The bank's net NPA stood at 0.32%, while gross NPA stood at 1.97% as on June 30, 2025. He also said the bank would raise ₹4,000 crore in the third or fourth quarter through various means, including Qualified Institutional Placement. This would reduce the Government of India's stake in the bank by 4% from 94%. The bank is also looking to raise ₹10,000 crore through infrastructure bonds, Mr. Srivastava said.
Time of India
6 days ago
- Business
- Time of India
IOB net profit jumps 75% in Q1 FY26; bank plans to raise Rs 4,000 crore in Q3
IOB MD & CEO Ajay Kumar Srivastava CHENNAI: Public sector Indian Overseas Bank (IOB) on Friday reported a 75.6% rise in net profit in the quarter ended June 30, 2025 at Rs 1,111 crore against Rs 633 crore during the corresponding quarter last year. It was on the back of growth in interest income YoY by 13% at Rs 7,386 crore in Q1 FY26 and other income. The Chennai-headquartered bank will raise Rs 4,000 crore likely by Q3 of the current fiscal. It has also received approval from its board for raising Rs 10,000 crore through infrastructure bonds. While its net interest income (NII) increased by 12.5 % to Rs 2,746 crore in April-June period of 2025-26 from Rs 2,441 crore, the gross advances rose by 14 % YoY and stood at Rs 2,62,421 crore during the first quarter of the current fiscal. CASA ratio improved by 161 bps to 43.8 % as on June 30, 2025. Its gross non-performing assets (GNPA) ratio reduced to 1.97% as on 30.06.2025, a decrease by 92 bps, against 2.89 % during the year ago quarter. The net NPA ratio was down to 0.32% in Q1 FY26 from 0.51 % in the same quarter last year. The bank recorded fresh slippages of Rs 254 crore in the quarter ended June 2025. Its total recovery for the quarter ended June 30, 2025 increased to Rs 851 crore from Rs 582 crore in the corresponding quarter (Q1 FY25). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo The recovery from the written off accounts (technical write off & set off) for Q1 FY26 increased to Rs 629 crore from Rs 364 crore as on June 30, 2024. However, net interest margin (NIM) (domestic) stood at 3.17 % as on June 30, 2025, which is a marginal dip YoY by 4 bps and 60 bps QoQ basis when compared with March 31, 2025. The cost of deposit also rose by 15 bps at 5.1% in Q1 FY26 from 4.95% during the same quarter previous year. IOB MD & CEO Ajay Kumar Srivastava told reporters here that the Q1 FY26 net profit was the highest for the bank during any quarter. "The driver was interest income. We have been able to control the expenses to a certain extent and there was an increase in other income. We sold priority sector lending certificates. We got around Rs 200 crore through that," he said. The bank would continue to sustain with the same level of net profit in the coming quarters, he added. The state-owned bank will be raising Rs 4,000 crore through qualified institutional placement (QIP) during Q3. "If we can raise the entire Rs 4,000 crore, it will bring down the Centre's holding with the bank to 90% from the current 94%," he said. On the infrastructure bond of Rs 10,000 crore, Srivastava said, "We started the process three months ago. Due diligence is going on and we will go to the market when conditions are conducive to raise." Steps are being taken to bring back NIM to 3.25% by the last two quarters of FY26. "Now, we are trying to reduce the pressure on margin. By reducing the rate of interest on deposits and other expenses, we are expecting that the pressure on margin will be eased out by Q4." He said the business growth for the current fiscal would be 11%-12%. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
6 days ago
- Business
- Business Standard
IOB Q1 net up 76% at ₹1,111 cr, eyes QIP for ₹4,000 cr equity in Q3FY26
Chennai-based Indian Overseas Bank (IOB) has posted a 75.57 per cent Year on Year (YoY) increase in net profit to Rs 1,111 crore for the first quarter ended June 2025 (Q1FY26), driven by steady interest income and the sale of priority sector lending certificates (PSLCs). The lender is planning to raise up to Rs 4,000 crore through a Qualified Institutional Placement (QIP) in the third quarter of the current financial year to dilute government shareholding. Net Interest Income (NII) rose by 12.5 per cent YoY to Rs 2,746 crore, while the net interest margin (NIM) moderated to 3.04 per cent in the reporting quarter from 3.06 per cent in Q1FY25. Non-interest income rose by 43.37 per cent YoY to Rs 1,481 crore in Q1FY26. Ajay Kumar Srivastava, Managing Director and Chief Executive, IOB, said, 'Besides steady growth in Net Interest Income (NII), control on expenses and the sale of PSLCs helped in improving profit after tax.' NIM may take a hit of 5-10 basis points in the near term due to the immediate impact of lending rate cuts following the policy repo rate reduction by the RBI. The deposit rate cut by the lender will impact margins with a lag. NIM is expected to return to a level of 3.25 per cent by Q4FY26, Srivastava said in a post-earnings media interaction. Advances grew by 14.05 per cent YoY to Rs 2.62 trillion. The state-owned bank is focusing on retail, agriculture, and MSME segments, while demand from the corporate segment remains subdued. The bank expects credit to grow by 12-13 per cent YoY in the current financial year, Srivastava added. Total deposits increased by 10.75 per cent YoY to Rs 3.3 trillion. The share of low-cost deposits—current account and savings account (CASA)—stood at 43.78 per cent at the end of June 2025, up from 42.17 per cent a year ago. The lender has guided for 10 per cent growth in overall deposits in FY26. The bank has board approval to raise up to Rs 10,000 crore through infrastructure bonds, which are exempt from meeting the Cash Reserve Ratio and Statutory Ratios. The bank's asset quality improved, with gross NPAs declining to 1.97 per cent in June 2025 from 2.89 per cent in June 2024. Net NPAs also declined from 0.32 per cent in June 2024 to 0.51 per cent in June 2025. The bank's capital adequacy stood at 18.28 per cent, with Common Equity Tier-1 capital at 15.78 per cent at the end of June 2025. IOB plans to raise up to Rs 4,000 crore in equity capital through a QIP in the third quarter, depending on market conditions. This QIP is expected to reduce government holding from 94 per cent to 90 per cent, Srivastava said.
