Canara Bank, Indian Bank, and Indian Overseas Bank see significant profit increases amidst reduced NPA, while UCO Bank faces a 23% decline
In the third quarter of the current financial year, the net profit of three public sector banks experienced notable growth, attributed to a substantial reduction in Non-Performing Assets (NPA). Interestingly, the key contributing factor appears to be the sustained stability in petrol and diesel prices over the past two years. Here’s a closer look at how Canara Bank, Indian Bank, and Indian Overseas Bank capitalized on this unique scenario, while UCO Bank faced a 23% decline in profits.
Canara Bank: 29% Surge in Net Profit
Canara Bank reported a commendable 29% increase in net profit, soaring to Rs 3,656 crore in the third quarter. The total income witnessed a rise from Rs 26,218 crore to Rs 32,334 crore, with net interest income growing by 9.5% to Rs 9,417 crore. A crucial highlight was the reduction in Gross NPA from 5.89% to 4.39%.
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Indian Bank: 52% Profit Surge
Indian Bank demonstrated a robust financial performance, with a remarkable 52% surge in net profit, reaching Rs 2,119 crore. The total income also saw a substantial increase from Rs 13,551 crore to Rs 16,099 crore. Similar to Canara Bank, Indian Bank experienced a significant drop in Gross NPA, from 6.53% to 4.47%.
Indian Overseas Bank (IOB): 30% Rise in Net Profit
Indian Overseas Bank celebrated a 30% increase in net profit, amounting to Rs 723 crore. The interest income reached Rs 6,176 crore, and there was a noteworthy decline in Gross NPA from 8.19% to 3.90%.
UCO Bank: 23% Decline in Net Profit
Contrary to its counterparts, UCO Bank faced a 23% decline in net profit, settling at Rs 503 crore. Despite this, the total income increased from Rs 5,451 crore to Rs 6,413 crore. Notably, Gross NPA reduced from 5.63% to 3.85%.
Indian Oil Corporation (IOC): Profit Soars to Rs 8,063 crore
In a related development, Indian Oil Corporation (IOC) posted an impressive profit of Rs 8,063 crore, a significant leap from Rs 448 crore in the corresponding quarter a year ago. The primary driver behind this surge was the unchanging prices of petrol and diesel over the last two years, leading to improved profit margins amid a backdrop of economical crude oil prices.
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