Indian Overseas Bank’s net loss for Q2 widens to Rs 550.83 crore

By: | Published: November 1, 2015 12:05 AM

Further weakening its financial health, Chennai-headquartered public sector lender Indian Overseas Bank (IOB) has posted a net loss of Rs 551 crore...

Further weakening its financial health, Chennai-headquartered public sector lender Indian Overseas Bank (IOB) has posted a net loss of Rs 551 crore for the quarter ended September 30, 2015, as compared to the  net loss of Rs 245 crore in the corresponding quarter last fiscal. Total income has increased to Rs 6,770 crore from Rs 6,441 crore.

The bank in a release said increased provisions for domestic and overseas advances resulted in net loss of Rs 551 crore.

The bank, which has been faced with bad assets for a couple of quarters, in the September quarter, too, recorded a gross NPA ratio of 11%. In absolute terms, gross NPA, as on September 30, 2015, stood at Rs 19,424 crore. Similarly, while net NPA ratio was at 7.41%, net NPA absolute figures stood at Rs 12,539 crore. Provision coverage ratio stood at 49.98%.

The total business grew to Rs 4,09,542 crore from Rs 4,07,026 crore. Net interest margin (NIM) stood at 2.03%  during the quarter, while credit-deposit ratio was at 75.75%. CASA ratio stood at 26.14% while cost-to-income ratio was recorded at 54.42%.

The Union government had infused Rs 2,009 crore capital during September 2015 for allotment of 48.56  crore equity shares on preferential basis.

Earlier in October, RBI had taken prompt corrective action against IOB with the view to improve internal processes to deal with mounting non-performing assets.

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