Chennai-headquartered public sector lender Indian Overseas Bank (IOB) has reported a net loss of Rs 3,606.73 crore for the January-March quarter of FY18 as against net loss of Rs 646.66 crore in the corresponding quarter last fiscal, mainly due to higher provisions on account of RBI guidelines on revised framework on resolution of stressed assets.
Chennai-headquartered public sector lender Indian Overseas Bank (IOB) has reported a net loss of Rs 3,606.73 crore for the January-March quarter of FY18 as against net loss of Rs 646.66 crore in the corresponding quarter last fiscal, mainly due to higher provisions on account of RBI guidelines on revised framework on resolution of stressed assets. Post the revised framework, the bank has classified the specific restructured accounts in accordance with extant IRAC norms and made a provision of Rs 799.37 crore towards such accounts during the current quarter, IOB said in a statement.
On the asset quality front, the bank continues to reel under stress with gross NPA as on March 31, 2018 staying at Rs 38,180 crore with ratio of 25.28% as against Rs 35,098 crore with ratio of 22.39% as on March 31, 2017, with the fresh slippage due to revised framework of stressed asset to the tune of Rs 3,629 crore. Likewise, the net NPA was at Rs 20,400 crore with ratio of 15.33% as against Rs 19, 749 crore with ratio of 13.99%. The bank said that total recovery of `5,726 crore was achieved in the fourth quarter as against the recovery of Rs 2,729 crore in the same quarter last fiscal. Provision coverage ratio has improved to 59.45% as compared to 53.63%.
Total income of the bank for the fourth quarter stood at Rs 5,814 crore as against Rs 5,662 crore, registering a growth of 2.68%. Interest income was at Rs 4,828 crore as against Rs 4,630 crore, logging a growth of 4.28%. CASA of the bank improved to 36.75% as against 36.09% as the total CASA has increased to Rs 79,678 crore from Rs 76, 269 crore.
Total business stood at Rs 3,67,831 crore as against Rs 3,68,119 crore while total deposits increased to Rs 2,16,832 crore from Rs 2,11,343 crore. The bank has reduced the concentration of bulk deposits and increased retail term deposits to have a stable deposit profile and reduce the cost of funds.
Gross advances stood at Rs 1,50,999 crore as against Rs 1,56,776 crore earlier. The bank has rebalanced the credit portfolio with RAM’s (Retail, Agri and MSME) share of total domestic advances improving from 58.74% to 64.82% year-on-year. During the quarter, the bank had received a sum of Rs 4,694 crore as capital infusion by the Centre for 2017-18 as part of the recapitalisation plan for public sector banks.
For the whole year, the bank’s net loss was at Rs 6,299.49 crore as against net loss of Rs 3,416.74 crore, mainly due to increase in provision by Rs 2,937 crore. Total income for the year stood at Rs 21, 662 crore as compared to Rs 23,091 crore in the previous year on account of less treasury income and contraction of credit, the bank said.