Indian Overseas Bank loss widens to Rs 765 cr in Q2

Indian Overseas Bank's loss widened to Rs 765.13 crore in the quarter ending September due to spike in provisions for increased bad loans.
The state-owned lender had reported a net loss of Rs 550.83 crore in the July-September quarter of previous fiscal 2015-16.
Total income of the bank fell to Rs 5,961.62 crore during July-September of the current fiscal, from Rs 6,769.94 crore earned in the same quarter of 2015-16, the bank said in a filing to BSE.
Provisions for bad loans and contingencies rose to Rs 1,697.56 crore for the quarter, against Rs 1,557.76 crore in the same period of previous fiscal.

As asset quality slipped, bank's gross non-performing assets (NPAs) as a percentage of gross advances rose to 21.77 per cent as on September 2016, from 11 per cent a year ago. The gross NPAs were at Rs 34,724.12 crore at the end of September 2016, from Rs 19,423.75 crore.
IOB said the increase in gross NPAs is mainly on account of reduction in asset size.

"Recovery of NPA accounts for the half year ended September 30, 2016 is Rs 3,534 crore and during the quarter is Rs 2069 crore," it said.
Net NPAs or bad loans hit 14.30 per cent of net advances at end of September 2016-17, from 7.41 per cent year ago. In value terms, net NPAs were at Rs 20,765.31 crore as against Rs 12,539.23 crore.

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Indian Overseas Bank in a separate filing said that its Executive Director R Subramaniakumar will get additional charge of Managing Director & CEO from today.
"R Subramaniakumar, Executive Director, of the Bank has been entrusted with additional charge of the Managing Director & CEO with immediate effect vide Ministry of Finance, Notification dated November 11, 2016," it said.