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Tuesday, February 25, 2020

IOB Q3 loss at Rs 6,075 crore as provisioning for bad loans more than triples

Its total income during the December 2019 quarter also fell to Rs 5,197.94 crore from Rs 5,688.59 crore in the year-ago quarter, IOB said in a regulatory filing.

By: ENS Economic Bureau | Mumbai | Updated: February 11, 2020 3:46:44 am
Indian Overseas Bank, Indian Overseas Bank loss, Indian Overseas Bank revenue, Indian Overseas Bank quartely report Provisioning for bad loans jumped to Rs 6,663.94 crore, compared to Rs 2,075.28 crore a year ago. The bank’s total loss in the last three quarters amounts to Rs 8,671 crore.

Public sector lender Indian Overseas Bank (IOB) has reported a higher net loss to Rs 6,075 crore in the third quarter ended December 2019 as against a net loss of Rs 346 crore during the corresponding October-December period of 2018-19.

Its total income during the December 2019 quarter also fell to Rs 5,197.94 crore from Rs 5,688.59 crore in the year-ago quarter, IOB said in a regulatory filing. Provisioning for bad loans jumped to Rs 6,663.94 crore, compared to Rs 2,075.28 crore a year ago. The bank’s total loss in the last three quarters amounts to Rs 8,671 crore.

IOB’s gross non-performing assets (NPAs), however, dropped to 17.12 per cent of the gross loans at the end of December 2019, from 23.76 per cent a year ago. Net NPAs fell to 5.81 per cent from 13.56 per cent. In value terms, the gross NPAs were valued at Rs 23,733.86 crore as against Rs 35,786.57 crore previously. Net NPAs were Rs 7,087.09 crore from Rs 17,987.92 crore a year ago.

On NPA divergence for 2018-19, the bank said there was a gap of Rs 358 crore in gross bad loans, as the bank had reported it to be Rs 33,398 crore while the Reserve Bank of India assessed it to be at Rs 33,756 crore.

Net NPAs divergence was of Rs 358 crore and the divergence for provision came in at Rs 2,208 crore. Thus, overall loss during 2018-19 was adjusted to Rs 5,999.90 crore from the earlier reported Rs 3,737.90 crore.

The provision coverage ratio improved to 86.20 per cent, IOB stated, adding that it posted a net loss of Rs 2,254 crore for September quarter.

Total recovery, including technical write-offs, stood at Rs 7,085 crore achieved for the quarter ended December as against Rs 6,720 crore achieved for the September quarter, while the total fresh slippage (other than debits to existing NPA accounts) for quarter ended December was Rs 1,648 crore as against Rs 1,795 crore for the previous quarter.

Total deposits marginally increased to Rs 2,21,290 crore as against Rs 2,20,311 crore as of December 2018.

The bank has reduced the concentration of bulk deposits and high cost deposits and increased retail term deposits to have stable and sustainable deposit profile and reduce the cost of funds.

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