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Indian Overseas Bank Q1 net loss narrows to Rs 499 cr

Total income has declined 11.8% during the quarter to Rs 5,174.50 cr

Gireesh Babu  |  Chennai 

Indian Overseas Bank, IOB

loss of for the ended June 30, 2017, has narrowed to Rs 499.09 crore as compared to Rs 1,450.50 crore during the same of last year.

Total income has declined 11.8 per cent during the to Rs 5,174.50 crore during the as against Rs 5,868.44 crore during the corresponding of previous fiscal, on account of reduction in interest rates, said the Bank.

The gross Non-Performing Asset (NPA) during the was at Rs 35,453.12 crore, with a ratio of 23.6 per cent as compared to Rs 33,913.15 crore with 20.48 per cent ratio during the same last year. Accretion to is at Rs 355 crore in the ended June 2017.

One of the main reasons for higher ratio is the contraction of credit by 9.26 per cent year on year, it said. The increase in was 4.54 per cent over the same last year, despite the contraction of advances by 9.26 per cent during the comparable period.

NPA stood at Rs 20,165.61 crore (14.97 per cent) during the ended June 2017, as compared to Rs 21,321.24 crore (13.97 per cent). The bank, in a statement, said that the NPA has reduced in quantum and the higher NPA is due to contraction of credit year on year. The provision coverage ratio has seen an improvement to 53.09 per cent as on June 30, 2017, as against 47.61 per cent as on June 30, 2016, it said.

Recovery on NPA accounts for the was at Rs 2,784 crore as against Rs 1,465 crore for the corresponding of last year. interest margin stood at 1.65 per cent for the compared to 1.87 per cent for the same of previous fiscal.

The Current Account and Savings Account (CASA) of the bank increased to 36.52 per cent, by the end of June 2017, from 30.70 per cent as on June 30, 2016, with year on year growth at 582 bps.

The management is planning to conduct a system audit in the near future to address issues related to the implementation of a new operating system, Finacle. During the process of migration, some issues including one related to the balances lying in interest receivable account which are in the process of conciliation came up. The bank has taken adequate steps to address the technical issues, it said.

First Published: Thu, August 10 2017. 18:29 IST