Indian Overseas Bank today posted a net loss of Rs 936.19 crore for the January-March quarter as provisions more than doubled due to spike in bad loans.
Indian Overseas Bank had a net profit of Rs 35.50 crore in the same quarter of 2014-15.
“Total income decreased to Rs 6,157.72 crore during three months ended March 2016, from Rs 6,704.03 crore in the corresponding period of preceding fiscal”, it said in a regulatory filing.
Provisions for bad loans or non-performing assets (NPAs) and contingencies more than doubled to Rs 2,666.16 crore in January-March 2015-16, from Rs 986.23 crore in the year ago period, according to the filing.
Gross NPAs hit 17.40 per cent of gross advances at Rs 30,048.63 crore as of March 2016, against 8.33 per (Rs 14,922.45 crore) in the preceding year.
Net NPAs were 11.89 per cent of net advances accounting for Rs 19,212.57 crore, against 5.68 per cent or Rs 9,813.33 crore in the same period of 2014-15.
For full year 2015-16, Indian Overseas Bank’s loss widened to Rs 2,897.33 crore, from Rs 454.33 crore in 2014-15.
“Total income decreased to Rs 26,045.55 crore for the year ended March 2016 from Rs 26,076.93 crore in the year ago fiscal,” it added.
Stock of the public sector lender closed down by 1.25 per cent to Rs 27.60 on BSE.