The state-owned lender posted a net loss of Rs 342.08 crore for the same quarter a year ago.
Provisioning for bad loans and contingencies during the quarter under review fell to Rs 1,060.38 crore as against Rs 4,501.92 crore in the year-ago quarter.
Indian Overseas Bank reduced its interest rate on loans linked to MCLR by 30 basis points in overnight tenor and by 20 bps in one month to one year tenors.
The bank said SHGs with a good track record and a history of minimum two loans from IOB will be eligible for this loan facility, which can be availed till June 30, 2020.
The bank's managing director and chief executive officer (MD & CEO) said that the next criterion is to make some profit.
At the end of March, 2018, total capital ratio as per the Basel- III norms declined to 9.20 per cent for PNB as against 11.66 per cent at the end of March 2017, according to a filing by PNB.