The government-owned Indian Overseas Bank (IOB) on Tuesday reported a net loss of Rs 342 crore during the April to June quarter of current fiscal versus a loss of Rs 919 crore in Q1 of FY19.
"The net loss is due to provisions, and not due to operations," said the bank in a statement. Many banks are saddled with huge non-performing assets (NPAs) due to large exposure in stressed sectors like real estate, power, telecom, and airlines.
IOB's total income for the quarter ended June 30 was Rs 5,006.48 crore as against Rs 5,326.71 crore in the year-on period. The bank's gross advances stood at Rs 147,606 crore as against Rs 148,760 crore as on June 30 last year.
"The bank has evolved a policy of not taking fresh exposures in stressed sectors, below hurdle rated accounts and BB and below rated accounts. The bank has also exited from accounts in the stressed sectors," it said.
Total business stood of Rs 3.68 lakh crore as in Q1 as against Rs 3.61 lakh crore as on June 30, 2018.
IOB's gross NPAs totalled Rs 33,262 crore on June 30 this year with a ratio of 22.53 per cent as against Rs 38,146 crore with a ratio of 25.64 per cent as on June 30 last year. The total recovery was Rs 2,238 crore versus Rs 3,389 crore in the same period of last year.
Provision coverage ratio improved to 72.24 per cent as against 61.1 per cent on June 30 last year.
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