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  1. IOB slips into red, posts Rs 516-cr loss

IOB slips into red, posts Rs 516-cr loss

Public sector lender Indian Overseas Bank (IOB) posted a net loss of R516 crore for the third quarter compared to a net profit of R75 crore in the same quarter last fiscal.

By: | Chennai | Updated: February 6, 2015 4:29 AM

Public sector lender Indian Overseas Bank (IOB) posted a net loss of R516 crore for the third quarter compared to a net profit of R75 crore in the same quarter last fiscal.

The bank attributed the huge loss to increase in provisions for domestic and overseas advances and also due to a conscious decision by the bank to contain credit growth. Total income stood at R6,647.45 crore compared to R6,190.20 crore.

The bank’s business grew 6.18% to R4,11,354 crore as on December 31, 2014 from R3,87,406 crore. Total deposits rose 9.14% to R2,32,822 crore from R2,13,319 crore, a year ago.

Advances rose only 2.55% to R1,78,532 crore as on December 31, 2014, from R1,74,087 crore. Gross NPAs as on December 31, 204 stood at R14,501 crore against R13,334 crore as on September 30, 2014, with a gross NPA ratio of 8.12% (compared to 5.27%, a year ago) and 7.35%, respectively. During the same quarter last year, the bank’s gross NPA was R9,168.08 crore.

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Net NPA as on December 31, 2014, stood at R9,511.15 crore against R9,108.81 crore as in September 30, 2014, with a net NPA ratio of 5.52% and 5.17%, respectively.  However, slippages during the quarter were reduced by 50%. Provision coverage ratio improved to 50.03% as on December 31, 2014, from 48.74%as on September 30, 2014. The bank’s capital-adequacy ratio (CRAR) as per Basel-III, Tier-I stood at 7.24% as on December 31, 2014 and Tier-II was at 2.91%.

Total CRAR stood at 10.15% compared to 10.30% during the quarter ended September 30, 2014.

Last week, the bank had issued Basel-III-compliant additional tier-I perpetual bonds for R1,000 crore to augment the capital requirement of the bank under Basel-III.

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