IOB says bottomline for Q4 hit by RBI's revised insolvency framework

Indian Overseas Bank reported a net loss of Rs 36.06 billion during the quarter ended 31 March 2018. This is a more than five-fold increase in losses from Rs 6.46 billion during the same quarter last year.

The increase in losses is mainly due to higher bad loan provisioning requirements as mandated by revised RBI guidelines on the resolution of stressed assets, the bank said. 

Following the revised framework, IOB has classified the specific restructured accounts in accordance with extant Income Recognition and Asset Classification (IRAC) norms and made a provision of Rs 7.99 billion towards such accounts during the current quarter.

The total recovery during the third quarter of FY18 was at Rs 57.26 billion as against the recovery of Rs 27.29 billion during the same quarter in FY17. The total slippage for the quarter ended March 2018 stood at Rs 98.68 billion.

Total income grew close to three per cent at Rs 58.14 billion as compared to Rs 56.61 billion during the same period in the previous year.

Gross Non-Performing Assets (NPA) grew to Rs 381.8 billion, which is 25.28 per cent of the gross advances, as compared to Rs 350.98 billion (22.39 per cent) during same period last year. Net NPA grew to Rs 203.99 billion (15.33 per cent) as against Rs 197.49 billion (13.99 per cent) in the corresponding quarter of last year. Fresh slippage due to the revised framework of stressed assets that amount to Rs 36.29 billion.

Total business of IOB stood at Rs 3.67 trillion on 31 March 2018 as against Rs 3.68 trillion a year ago.