Public sector lender Indian Overseas Bank (IOB) posted a 86.8% drop in net profit to Rs 35.50 crore for the quarter ended March from Rs 268 crore in the corresponding quarter last fiscal. Total income increased 3.5% to Rs 6,704 crore from Rs 6,476 crore. The bank attributed the drop in net profit to increased bad assets and subsequent provisioning towards sticky loans.
However, on a sequential basis, the bank achieved a turnaround — it had posted a net loss of Rs 516 crore in the third quarter.
Speaking to reporters after releasing the earning performance on Friday, IOB MD & CEO R Koteeswaran said while bad assets ate into the bottomline in the first three quarters of FY15, the bank could contain addition of NPAs considerably in the fourth.
“Our credit growth was slow because of a conscious decision not to lend aggressively. Moreover, we concentrated more on MSMEs and retail portfolio. Going forward, our focus will be on recovery, upgradation of accounts and prevention of accumulation of further bad assets,” he said.
For the year ended March 31, 2015, the bank posted a net loss of Rs 454 crore compared to net profit of Rs 602 crore.
The bank reported a total income of Rs 26, 076 crore against Rs 24,853 crore in the previous fiscal.
The total business of the bank stood at Rs 4.25 lakh crore as on March 31, 2015, against Rs 4.09 lakh crore for the previous year..
Gross NPAs of the bank went up to Rs 14,922.45 crore for the quarter from Rs 9,090.48 crore during the same quarter last year.