 "IOB Q2 net loss widens to Rs 765 cr")
Net loss of Indian Overseas Bank (IOB) has widended to Rs 765.13 crore for the quarter ended September 30, 2016, as compared to a net loss of Rs 550.83 crore during the same quarter of last financial year.
Total income declined 12% to Rs 5,961.62 crore during the quarter, as against Rs 6769.94 crore recorded during the same quarter of last year.
Gross non performing assets (NPAs) as a percentage of advances almost doubled to 21.77% , at Rs 34,724.12 crore, as compared to 11% at Rs 19,423.75 crore during September 30, 2016. Net NPA as a percentage of advances also jumped to 14.30% at Rs 20765.31 crore as compared to 7.41%, at Rs 12539.23 crore during the corresponding quarter of previous year.
The Capital Adequacy Ratio (CAR) is at 10.15% and the Bank said that it has issued Tier II bonds for Rs 800 crore during the first week of November 2016, which will improve the Tier II Capital, improving the CAR. Net interest margin for the quarter stood at 2.02% as against 1.87% during the same quarter of last year.
The Bank said that during the quarter ended September 30, 2016, it has redeemed Rs 500 crore Lower Tier II Bonds, another Rs 500 crore upper Tier II bonds, and Perpetual Tier I Basel II bonds for Rs 80 crore.
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