Net interest margin declined to 2.22% in Q4 FY21 from 2.6% in Q4 FY20. Provisions (other than tax) and contingencies increased by 30.1% YoY to Rs 1,380.46 crore in Q4 FY21 over Q4 FY20. Provision coverage ratio stood at 90.34% as on 31st March 2021 as against 91.91% as on 31st December 2020 and 86.94% as on 31 March 2020.

On the asset quality side, gross non-performing assets (NPAs) stood at Rs 16,323.18 crore as on 31 March 2021 as against Rs 16,753.48 crore as on 31 December 2020 and Rs 19,912.7 crore as on 31 March 2020.

The gross NPA ratio stood at 11.69% as on 31 March 2021, compared to 12.19% on 31 December 2020 and 14.78% as of 31 March 2020. The net NPA ratio stood at 3.58% as on 31 March 2021 from 3.13% as on 31 December 2020 and 5.44% as on 31 March 2020.

The bank reported a net profit of Rs 831.47 crore in year ended March 2021 (FY21) compared with net loss of Rs 8,527.40 crore in the year ended March 2020 (FY20). Total income increased 8.7% to Rs 22,521.55 crore in FY21 over FY20.

Totol deposits increased to Rs 2,40,288 crore as on 31st March 2021 as against Rs 2,22,952 crore as on 31st March 2020.

The bank's CASA improved to 42.52% (domestic 42.70%) as on 31st March 2021 as against 40.26% (domestic 40.67% as on 31st March 2020). Total CASA has increased from Rs 89,751 crore as on 31 March 2020 to Rs 1,02,165 crore as on 31 March 2021 and registered 13.83% growth as of 31st March 2021 over 31st March 2020.

Gross advances stood of Rs 1,39,597 crore as on 31st March 2021 as against Rs 1,34,771 crore os on 31st March 2020. The bonk has evolved a policy of not toking fresh exposures in stressed sectors, below hurdle rated accounts and BB and below rated accounts. The bank has also exiled from accounts in the stressed sectors, wherever feasible.

In a separate announcement, Indian Overseas Bank announced that its board has approved issuing upto 125 crore equity shares with appropriate premium to the public, by way of follow-on public offer/rights issue with or without participation from GoI/issue of equity shares to qualified institutional buyers/issue of shares to employees/issue of shares on preferential basis to LIC and other insurance companies/mutual funds/QIBs, after obtaining the approval of the shareholders.

The board also approved to raise Tier II capital by issue of BASEL III Compliant Tier II Bonds up to a maximum extent of Rs 1,000 crore with or without applicable green shoe option, in one or more tranche/s, on private placement to retail segment by way of public issue either domestically or overseas.

The Government of India held 95.84% stake in Indian Overseas Bank as on 31 March 2021.

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