Begin typing your search...
IOB posts Rs 6,075 cr net loss in Q3
The bank provisioned Rs 6,663.94 as for bad loans in the quarter, which is has balloned from Rs 2,075 crore in the year-ago period.
Indian Overseas Bank on Monday posted a standalone loss of Rs 6,075.49 crore for the quarter ended December 31 from a loss of Rs 346.02 crore in the same period last year.
The bank provisioned Rs 6,663.94 as for bad loans in the quarter, which has ballooned from Rs 2,075 crore in the year-ago period. High provisions hit the profitability of IOB.
Operating profit was at Rs 762.35 crore against Rs 1,466.15 crore for the quarter ended December 31, 2018. Total income of IOB during Q3 was at Rs 5,197.95 crore while interest income stood at Rs 2,867.66 crore. Gross NPA ratio slid to 17.12 per cent against 23.76 per cent last year. Net NPA saw an improvement of 775 basis points, as it eased to 5.81 per cent from 13.56 per cent. For the nine-month period ended December 2019, the net loss was Rs 8,671 crore.
The provision coverage ratio improved to 86.2 per cent during the quarter against 64.23 per cent in the year-ago period. Fresh slippages were at Rs 1,647.82 crore while recovery was at Rs 7,085.04 crore.
The bank is not taking fresh exposures in stressed sectors, below hurdle rated accounts and 'BB' and below rated accounts. The bank has also exited from accounts in the stressed sectors, wherever feasible.
Due to this, gross advances came down to Rs 1,38,643 crore in the December quarter from Rs 1,50,590 crore in the same quarter last year.
"The Bank plans to come out of Prompt Corrective Action by focusing on recovery, low cost deposits and less capital consuming advances. During the current quarter, the Government of India has sanctioned capital infusion of Rs 4,360 crore and the CRAR is stands at 10.43 per cent post infusion of capital. Due to provisions made during the quarter, net NPA has improved to 5.81 per cent which is less than 6.00 per cent prescribed by RBI," the Indian Overseas Bank said.
Total recovery, including technical write off, stood at Rs 7,085 crore achieved for quarter ended December 2019 as against Rs 6,720 crore achieved for quarter ended September 2019 while the total fresh slippage (other than debits to existing NPA accounts) for quarter ended December '19 was Rs 1,648 crore as against Rs 1,795 crores for the previous quarter.