Chennai-headquartered Indian Overseas Bank (IOB) on Friday reported a net loss of Rs 487.26 crore for the July-September quarter, against a net loss of Rs 1,222.50 crore in the same quarter last fiscal, thus paring the loss by around 60% year-on-year.
Chennai-headquartered Indian Overseas Bank (IOB) on Friday reported a net loss of Rs 487.26 crore for the July-September quarter, against a net loss of Rs 1,222.50 crore in the same quarter last fiscal, thus paring the loss by around 60% year-on-year. The bank, which has been plagued by mounting bad assets for quite some time now, also narrowed its loss by 47% from the April-June quarter, when it had clocked a net loss of Rs 919.44 crore. Total income of the bank decreased to Rs 5,348.35 crore from Rs 5,610.35 crore.
IOB said the net loss was due to provisions on bad debts and investment, and not because of operations. The gross NPA of the bank as of September 30, 2018 reduced by 91 bps and stood at Rs 37,110 crore with ratio of 24.73%, against Rs 38,146 crore with ratio of 25.64% as of June 30.
Gross NPA fell both in quantum and as a percentage of gross advances q-o-q, the bank claimed. The bank had gross NPA of Rs 34,708 crore with ratio of 22.73% as of September 30, 2017. Net NPA reduced by 76 bps and stood at Rs 18,876 crore with ratio of 14.34%, against Rs 19,642 crore with ratio of 15.10%. In absolute terms, net NPA got reduced by Rs 766 crore. IOB had net NPA of Rs 18,949 crore with a ratio of 13.86% as of September 30, 2017. The provision coverage ratio stood at 61.97%, against 55.88%.
The bank said total recovery registered an increase of 31.66% over June and stood at Rs 4,462 crore for the quarter ended September 2018, against Rs 3,389 crore in the June quarter. The total fresh slippage was contained at Rs 884 crore as against Rs 1,994 crore for the June quarter. Recovery achieved was substantially higher than slippages, mainly due to focused efforts towards recovery and containment of NPAs, the bank said.
IOB has recovered Rs 247 crore from six NCLT accounts during the quarter ended September 2018. The bank expects recovery to the tune of Rs 802 crore in the current quarter relating to two NCLT accounts where resolution were at advanced stage. Non-interest income registered a growth of 10.36% and increased to Rs 1,065 crore, against Rs 965 crore. Cross-selling of products & services and increasing the wallet share of customer resulted in lOB achieving 20% of total income as non-interest income, one of the highest among the PSBs, the statement claimed. CASA of the bank improved to 36.46%, compared with 36.26% with a y-o-y growth of 20 bps.