1. IOB’s Q2 loss widens to Rs 765 crore

IOB’s Q2 loss widens to Rs 765 crore

Chennai-headquartered public sector lender Indian Overseas Bank (IOB) on Friday reported a loss of Rs 765.13 crore for the quarter ended September 30, 2016, compared with a net loss of Rs 550.83 crore during the same quarter last year.

By: | Chennai | Published: November 12, 2016 6:11 AM

Chennai-headquartered public sector lender Indian Overseas Bank (IOB) on Friday reported a loss of Rs 765.13 crore for the quarter ended September 30, 2016, compared with a net loss of Rs 550.83 crore during the same quarter last year.

The bank, which has been facing asset quality problems for some quarters, also recorded a lower total income, which declined by 12% to Rs 5,961.62 crore, against Rs 6,769.94 crore in the year-ago period.

Gross non performing assets (NPAs) as a percentage of advances almost doubled to 21.77% at Rs 34,724.12 crore, compared with 11% at Rs 19,423.75 crore during September 30, 2015.

Net NPA also jumped to 14.30% at Rs 20,765.31 crore from Rs 12,539.23 crore.

The capital adequacy ratio (CAR) was at 10.15 % and the bank said it has issued tier II bonds for Rs 800 crore during the first week of November which will improve tier II capital.

The net interest margin for the quarter stood at 2.02% as against 1.87 % in the same quarter of last year.

The bank said that during the quarter ended September 30, 2016, it has redeemed Rs 500 crore lower tier II Bonds, another Rs 500 crore upper tier II bonds, and perpetual tier I Basel II bonds for Rs 80 crore.

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