Latest news with #IndianOverseasBank
Time of India
9 hours ago
- Business
- Time of India
Indian Overseas Bank's Hong Kong branch fined ₹9cr
Indian Overseas Bank (Image only for representation) CHENNAI: The Hong Kong Monetary Authority has imposed a penalty of HK$8.5 million (Rs 9.3 crore) on Indian Overseas Bank, Hong Kong branch (IOBHK) for contraventions of anti-money laundering and counter-terrorist financing ordinance (AMLO). It has pulled up the lender for "significant failure" to mitigate risks. Apart from IOB, the authority has levied penalties against the Bank of Communications (Hong Kong) and Bank of Communications Co. Hong Kong branch for HK$ 4 million and HK$ 3.7 million, respectively. A senior IOB official told TOI that there was no fraud or any anti-money laundering and counter-financing of terrorism violations. It pertains to issues over handling alerts generated by the software, which the bank is addressing by putting additional checks in place. "IOBHK has no history of disciplinary record regarding AMLO. It was only a matter of putting procedures in place," the official said. The development follows an investigation by the HKMA, in which the authority has charged that IOBHK has contravened three specified provisions of AMLO between May 2021 and Jan 2024. "IOBHK's management oversight of anti-money laundering and counter-financing of terrorism (AML/CFT) controls was inadequate. The senior management did not have a clear leadership role and responsibility over AML/CFT matters. They did not adequately discuss key AML/CFT control issues at relevant committee meetings and failed to appoint a competent person with sufficient AML/CFT knowledge as the Compliance Officer. As a result, the transaction alerts generated by IOBHK's transaction monitoring system were not properly followed up," the HKMA statement said. IOB in a statement to the exchange said "The bank and its branch operating at Hong Kong have taken necessary preventive actions to avoid such recurrence in future and further strengthen its internal processes in this regard. The impact of the said action on the bank is not material." Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
3 days ago
- Business
- Time of India
Indian Overseas Bank Q1 earnings: Profit hits Rs 1,111 crore; aims 12% annual growth
Representative image Public sector lender Indian Overseas Bank (IOB) reported its highest-ever quarterly net profit of Rs 1,111 crore in the April–June 2025 quarter, marking a 76 per cent year-on-year jump from Rs 633 crore. The bank, headquartered in Chennai, said it is confident of sustaining and growing this performance through the rest of FY26. 'Exactly. One hundred per cent sure. We are very confident of maintaining this and growing it from here,' said IOB Managing Director and CEO Ajay Kumar Srivastava, as quoted by news agency PTI. He pointed out that the net profit 'quarter on quarter… is increasing' and the graph has been 'very consistent.' He added that the Q1 growth came despite it typically being a 'lean quarter.' In the previous quarter (January–March 2025), IOB had posted a net profit of Rs 1,051 crore — also a record at the time. Looking ahead, Srivastava said the bank is targeting 12 per cent overall business growth in FY26, similar to the previous year. 'That is very comfortable to maintain. That is the minimum also. Beyond that also we are expecting to grow,' he noted. 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 On recoveries, the bank aims to meet its Rs 4,500 crore annual guidance. 'In Q1, we have done Rs 851 crore and remaining we are very very comfortably doing it,' Srivastava said. He added that IOB has recovered around Rs 4,500–Rs 5,000 crore annually in the last two years. IOB expects credit growth of 12–13 per cent this financial year. It is also in the process of obtaining approvals to open a branch at GIFT City in Gujarat. '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. The bank's gold loan portfolio remains a strong segment, especially in Tamil Nadu. Srivastava said the portfolio has consistently grown 37–38 per cent every year and is expected to maintain that rate this year as well. To support growth, IOB plans to raise Rs 4,000 crore in FY26, likely in Q3, through one or two tranches. Following the issue, the Government of India's stake is expected to come down from 94 per cent to around 90 per cent, he added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
3 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 )
United News of India
5 days ago
- Business
- United News of India
IOB posts historic Rs 1,111 cr net profit in Q1 FY26
Bengaluru, July 18 (UNI) Indian Overseas Bank (IOB) today reported a record-breaking net profit of Rs 1,111 crore for the quarter ended June 30, 2025, marking a 75.57% year-on-year (Y-o-Y) growth from Rs 633 crore in the corresponding quarter last year. This is the highest-ever quarterly net profit in the bank's history. According to the financial results released today, the public sector bank also saw its operating profit surge by 40.70% to Rs 2,358 crore, while Net Interest Income (NII) rose 12.50% to Rs 2,746 crore. The Net Interest Margin (NIM) stood at 3.04%. IOB's total business grew 12.19% Y-o-Y to Rs 5.93 lakh crore, with total deposits up 10.75% to Rs 3.31 lakh crore and gross advances rising 14.05% to Rs 2.62 lakh crore. The bank's CASA deposits grew by 15% to Rs 1.45 lakh crore, with CASA ratio improving to 43.78%. Asset quality also improved significantly. Gross NPA fell to 1.97% (down 92 basis points Y-o-Y), and Net NPA declined to 0.32%. Provision Coverage Ratio rose to an impressive 97.47%. The slippage ratio dropped to 0.10%, while credit cost stood at a conservative 0.29%. IOB's Capital Adequacy Ratio (CRAR) under Basel III norms improved to 18.28%, with CET1 at 15.78%. Return on Assets (RoA) increased to 1.14%, and Return on Equity (RoE) jumped to 19.00%. Cost-to-income ratio improved by 754 basis points to 44.22%. Total recovery during the quarter rose 46.13% to Rs 851 crore, including Rs 629 crore recovered from written-off accounts. On the operational front, IOB expanded its domestic branch network to 3,345 branches, up from 3,250, and significantly increased Business Correspondent engagement to 10,872. Total customer touchpoints grew to 17,678 across India. IOB was ranked first among PSBs in June 2025 for outstanding customer service (CPGRAMS). The bank also launched several digital initiatives including QR-based feedback, WhatsApp banking, and organic farming cards. Further, IOB hosted a major FPO conclave in Madurai and signed an MoU with IIBF for a specialized MSME course. The bank was also recognized as a top performer under the Kalaignar Kaivinai Thittam MSME scheme and received a special citation under the EASE 7.0 reforms. Indian Overseas Bank's performance in Q1 FY26 reflects strong fundamentals, digital agility, and improved asset quality, positioning it well for sustained growth in the coming quarters. UNI BDN BM
News18
5 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.
