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Indian Overseas Bank’s net loss more than quadruples at Rs 3,606 crore

IOB’s gross non-performing assets also rose to Rs 38,810 crore as on March 31, 2018, as against Rs 35,098 crore in the comparable period due to fresh slippages on account of RBI’s revised framework.

Published: 31st May 2018 05:24 AM  |   Last Updated: 31st May 2018 05:24 AM   |  A+A-

IOB. (File Photo)

By Express News Service

CHENNAI: Indian Overseas Bank’s (IOB) fourth-quarter net loss more than quadrupled to Rs 3,606.73 crore from Rs 646.66 crore during the corresponding period a year ago, as the company reserved a higher portion of its income towards a provision for bad loans to comply with RBI’s revised framework for resolution of stressed assets.

The bank made a provision of Rs 799.37 crore towards bad loans during the fourth quarter. IOB’s gross non-performing assets also rose to Rs 38,810 crore as on March 31, 2018, as against Rs 35,098 crore in the comparable period due to fresh slippages on account of RBI’s revised framework.

The total slippage for the March quarter stood at Rs 9,868 crore, IOB said in a statement. “We expect net loss due to provisions moderating in the following quarters as we have laid out nearly Rs 4,000 crore worth of provision for bad loans this year to comply with the RBI mandate. We are also looking to definitely move southwards with respect to the gross NPA numbers as we see scope for a considerable recovery of bad loans this year,” said R Subramaniakumar, MD & CEO, IOB.

The bank has recovered Rs 15,496 crore in the March quarter as against Rs 8,710 crore a year earlier.
IOB said it is slowly moving to lending more to the Retail, Agriculture and MSME (RAM) sector due to the lower concentration of risk and its gross selling going up as a result of more customers.

The company reported 2.7 per cent rise in total income to Rs 5,814.42 crore during the FY18Q4, while its interest income registered a growth of 4.28 per cent to Rs 4,828 crore in the same period.

How numbers explain it

  • Rs 3606.73 crore: Indian Overseas Bank’s net loss during the fourth quarter of financial year 2017-18

  • Rs646.66 crore: The banks loss during the corresponding quarter last year

  • Rs 799.37 crore: Provision IOB made towards bad loans during the March quarter of 2017-18 fiscal

  • Rs 5,814.42 crore: The company’s total income, a rise of 2.7 per cent



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