IOB pares Q1 loss by 63%

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Published: July 24, 2019 12:54:54 AM

The bank said total recovery of Rs 2,238 crore was achieved in Q1FY20 against Rs 3,389 crore a year ago.

Recovery achieved was higher than slippage during the quarter mainly due to focused efforts towards recovery, the bank said.

Indicating emergence of a slow and steady revival, Chennai-based public-sector lender Indian Overseas Bank (IOB) has pared net loss by 62.8% to Rs 342.08 crore in Q1FY20, compared to Rs 919.44 crore a year ago. Sequentially, IOB has trimmed its loss from Rs 1,985 crore, registered in Q4FY19, mainly due to lower provisioning and improved recovery.

Total income fell 6% to Rs 5,006.48 crore against Rs 5,326.71 crore a year ago.

On asset quality, the bank staged a mild recovery, with the gross NPA coming down to 22.53% (Rs 33,262 crore) from 25.64% (Rs 38,146 crore). Similarly the Net NPA decreased to 11.04% (Rs 14,173 crore) from 15.10% (Rs 19, 641crore). The bank said total recovery of Rs 2,238 crore was achieved in Q1FY20 against Rs 3,389 crore a year ago.

Total fresh slippage (other than debits to existing NPA accounts) for the quarter ended stood at Rs 2,050 crore. Recovery achieved was higher than slippage during the quarter mainly due to focused efforts towards recovery, the bank said.

Earlier this month, the bank’s new MD & CEO Karnam Sekar said the lender was expecting to bounce back to profitability in Q2FY20.

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