IOB’s June quarter loss at Rs 919 cr

By: | Published: July 28, 2018 2:21 AM

Chennai-headquartered public sector lender Indian Overseas Bank (IOB) on Friday reported a net loss of Rs 919.44 crore for the first quarter against a net loss of Rs 499.09 crore in the corresponding quarter of last fiscal, mainly due to increase in provisioning towards bad assets.

iob, indian overseas bankIOB had reported a net loss of Rs 3,606.73 crore for the January-March quarter of FY18 against a net loss of Rs 646.66 crore in the corresponding quarter of last fiscal.

Chennai-headquartered public sector lender Indian Overseas Bank (IOB) on Friday reported a net loss of Rs 919.44 crore for the first quarter against a net loss of Rs 499.09 crore in the corresponding quarter of last fiscal, mainly due to increase in provisioning towards bad assets.

Total income for the quarter was at Rs 5,326.71 crore against Rs 5,174.50 crore, registering a growth of 2.94%, according to a statement by the bank.

Sequentially, IOB had reported a net loss of Rs 3,606.73 crore for the January-March quarter of FY18 against a net loss of Rs 646.66 crore in the corresponding quarter of last fiscal. For the first quarter, the bank had to make provisions to the tune of Rs 2,051.47 crore against Rs 1,275.69 crore for the same quarter last fiscal, an increase of Rs 775.78 crore (60.8%) year on year.

On the asset quality front, the bank continues to reel under stress with gross NPA staying at `38,146 crore as on June 30, 2018, with a ratio of 25.64% against Rs 35,453 crore with ratio of 23.60 % as on June 30, 2017, the bank said. Similarly, the net NPA was at Rs 19,642 crore with a ratio of 15.10% against `20,166 crore with a ratio of 14.97%, reducing it by Rs 524 crore in absolute terms. Provision coverage ratio stood at 61.10% .
The bank said total recovery of Rs 3,389 crore was achieved against the recovery of `2,784 crore, registering an increase of 21.73%, while the total slippage stood at `1,994 crore.

“Recovery achieved is substantially higher than slippages during the quarter mainly due to resolutions in NCLT accounts coupled with focused efforts towards recovery. The bank has recovered Rs 454 crore in three NCLT accounts during the quarter ended June 2018. Further, the bank expects recovery of `950 crore in the current quarter in four NCLT accounts where resolution is at an advanced stage,” the statement said.
Interest income increased to Rs 4,248.60 crore for the quarter against `4,187.20 crore, registering a growth of 1.47%. Non-interest income stood at `1,078.11 crore against `987.30 crore, reporting a growth of 9.20%. CASA of the bank improved to 36.85% against 35.85% while total CASA has increased to `78,560 crore from `75,561 crore.

IOB’s total business stood at Rs 3,61,928 crore against Rs 3,60,986 crore. Total deposits increased to `2,13,168 crore against `2,10,748 crore. The bank has reduced the concentration of bulk deposits and high cost deposits while increasing the retail term deposits to have a sustainable deposit profile at the same time reducing the cost of funds.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition