Public sector lender Indian Overseas Bank’s net loss narrowed to Rs 646.66 crore in the last quarter of 2016-17 fiscal due to reduction in provisions for bad loans. The bank had registered a net loss of Rs 936.19 crore in the same quarter of previous fiscal. Net income declined to Rs 5,661.70 crore during the fourth quarter of 2016-17 from Rs 6,157.72 crore in same period a year-ago, the bank said in a BSE filing.
The bank’s provisions for bad loans and contingencies decreased to Rs 1,789.74 crore during the March quarter from Rs 2,666.16 crore a year earlier. Asset quality worsened with gross non-performing assets (NPAs) hitting 22.39 per cent of gross advances at the end of March from 17.40 per cent in the year-ago period.
Net NPAs were 13.99 per cent of net loans, up from 11.89 per cent. For the full financial year 2016-17, the bank’s net loss however rose to Rs 3,416.74 crore from Rs 2,897.33 crore in 2015-16.
Its net income remained lower at Rs 23,091.25 crore as against Rs 26,045.55 crore in the said period. The bank said there were recoveries of Rs 8,710 crore from NPA accounts during the fiscal ended March, against Rs 5,872 crore the year-ago.