Indian Overseas Bank (IOB) on Monday reported a net loss of Rs 6,075 crore for the quarter ended December 31, 2019, compared with a Rs 346.02-crore loss reported in the same quarter last fiscal, due to provision of Rs 6,664 crore made during the quarter under review for NPAs and investments. In the second quarter ended September 30, 2019, the bank had reported a loss of Rs 2,254 crore.
The bank said the gross NPA for the quarter fell 2.88% to Rs 23,734 crore with the ratio of 17.12%, against Rs 28,673 crore with the ratio of 20% for the year-ago period. The net NPA declined 4.03% to Rs 7,087 crore (5.81%), compared with Rs 17,988 crore (13.56%) for the quarter ended December 31, 2018. The provision coverage ratio improved to 86.20% as on December 31, 2019 from 64.23% as on December 31, 2018, the bank said.
Total recovery, including technically written-off accounts, rose to Rs 7,085 crore for the quarter under review, against Rs 3,723 crore in the same quarter last fiscal. Total slippages for the latest quarter stood at Rs 1,647.82 crore, IOB said.
Total income during the quarter declined to Rs 5,197.94 crore, compared with Rs 5,688.59 crore. The interest income during the quarter stood at Rs 2,867.66 crore and the total expenditure was at Rs 4,435.60 crore. CASA improved to 39.10% as compared to 37.26%.
The total business stood at Rs 359,993 crore as on December 31, 2019, against Rs 370,901 crore in the same quarter last fiscal. Total deposits marginally increased to Rs 221,290 crore (Rs 220,311 crore) and gross advances came down to Rs 138,643 crore, compared with Rs 150,590 crore in the same quarter last fiscal.
The bank has evolved a policy of not taking fresh exposures in stressed sectors, below hurdle rated accounts and ‘BB’ and below-rated accounts. The bank has also exited from accounts in the stressed sectors wherever feasible, a note said.
According to the bank, the retail segment grew 9.21% to Rs 31,336 crore. The housing loans segment grew 7.45% to Rs 14,549 crore (Rs 13,541 crore).