Indian Overseas Bank (IOB) is in talks with the Union Bank of India to sell its 35% stake in India International Bank, Malaysia.

Originally, the India International Bank was a three-way joint venture. While the Bank of Baroda held 40% stake, the IOB had 35% and Andhra Bank 25%. Last year, Andhra Bank was taken over by the Union Bank of India as a part of a mega bank merger scheme.

"We have asked Union Bank of India to buy our stakes. The valuation exercise is going on," IOB managing director and CEO Partha Pratim Sengupta told reporters.

Meanwhile, IOB reported a net profit of Rs 327 crore for the quarter ending June compared to Rs 121 crore a year ago.

Total income, however, fell 1.5% year-on-year to Rs 5,155 crore from Rs 5,234 crore.

Interest income was down 5.6% to Rs 4,063 crore in the June quarter. Non-interest income rose 17.2% to Rs 1,092 crore due to rise in other income.

The public sector lender’s non-performing assets (NPAs) dropped to Rs 1,616 crore compared to Rs 1,969 crore in Q1FY21.

The bank's gross NPAs fell to 11.48% (Rs 15,952 crore) of the gross advances compared to 13.90% (Rs 18,291 crore) a year ago.

Net NPAs dropped to 3.15% (Rs 3,998 crore) from 5.10 % (Rs 6,081 crore).

Provisions for bad loans and contingencies for the quarter fell to Rs 868 crore from Rs 969.52 crore a year ago.

The bank’s deposits rose to Rs 2,42,941 crore in the first quarter of the fiscal compared to Rs 2,25,546 crore in the year-ago quarter.

"The bank plans to come out of prompt corrective action (PCA) by focussing on recovery, low-cost deposits and less capital consuming advances," it said.