Shares of Indian Overseas Bank today tumbled over 10.5 per cent after it reported net loss of Rs 516.03 crore for the quarter ended December 31 on account of higher provisions for bad loans.
The stock slumped 9.94 per cent to settle at Rs 50.30 on the BSE. During the day, it tanked 11.19 per cent to Rs 49.60.
At the NSE, it fell sharply by 10.59 per cent to end the day at Rs 49.80.
Led by the steep fall in the stock, the company’s market value diminished by Rs 685.2 crore to Rs 6,213.80 crore.
The Chennai-based lender had earned a net profit of Rs 75.07 crore in the October-December quarter of 2013-14, as against over Rs 516 crore loss in the same quarter of the current fiscal.
IOB is the first public sector lender to post a loss during the quarter among banks which have announced the results.
The net loss is due to increased provisions for domestic and overseas advances and also due to the conscious decision by the bank in containing its credit growth, IOB said in a statement.
Gross NPAs as a percentage to total advances rose significantly to 8.12 per cent from 5.27 per cent in the same quarter an year ago.
Its net NPAs went up to 3.52 per cent from 3.24 per cent at the end of December 2013, IOB said in a statement.