Indian Overseas Bank dips as net loss widens

Chennai-based Indian Overseas Bank (IOB) has slipped by nearly 3% at Rs 49 on the NSE after reporting a net loss for a consecutive quarter reflecting the stress on state-run lenders’ finances due to sustained deterioration in health of assets.

IOB said it incurred a net loss of Rs 516 crore in the October-December period as it made more provisions and contained loan disbursements. The public sector bank had also reported a net loss of Rs 245.5 crore in the previous (July-September) quarter.

IOB’s gross non-performing assets (NPAs) swelled to Rs 14,501 crore at the end of December from Rs 13,334 crore a quarter ago. Gross NPA ratio deteriorated 77 basis points sequentially to 8.1%.

Net NPA ratio was also high at 5.52 per cent compared to 5.17% as on September, 2014. This was despite the bank stepping up its recovery efforts, reducing slippages by almost 50%.

The stock opened at Rs 50, touched a low of Rs 48 on the NSE. Nearly 3 million shares changed hands on the NSE so far.