Indian Overseas Bank Q3 loss narrows to Rs 554 cr

Public sector Indian Overseas Bank (IOB) today reported narrowing of its December quarter net loss to Rs 554.44 crore.
Its net loss in the corresponding October-December quarter of 2015-16 fiscal was Rs 1,425.06 crore.
"Total income has decreased to Rs 5,599.50 crore for the quarter ended December 31, 2016 from Rs 6,445.78 crore for the same quarter a year ago," it said in a regulatory filing.
Interest income fell by 17.4 per cent to Rs 4,881.49 crore from Rs 5,912.60 crore a year earlier.
The income on investments decreased by 23 per cent to Rs 1,254.03 crore during October-December period of 2016-17 against Rs 1,629.01 crore in the same quarter of the previous fiscal.

The bank's revenues from treasury operations, corporate wholesale banking, retail and other banking also fell during the quarter.

On the asset front, gross non-performing assets (NPAs) increased to 22.42 per cent of the gross advances as on December 31, 2016 from 12.64 per cent a year earlier.
Net NPAs too soared to 14.32 per cent of net loans disbursed as on December 2016 against 8.32 per cent a year ago.
Value-wise, gross NPAs or bad loans stood at Rs 34,502.13 crore for the period under review, up from Rs 22,672.40 crore earlier. Net NPAs stood at Rs 19,900.75 crore from Rs 14,173.75 crore.

The increase in NPA ratios, reflected in percentage, is mainly on account of reduction in asset size, the bank said.
The provisioning for bad assets and contingencies came down to Rs 1,406.03 crore from Rs 1,896.06 crore parked aside for previous fiscal's third quarter.
"In pursuance to bank's Board approved policy, the bank has utilised a sum of Rs 170 crore from floating provisions/counter cyclical provisioning buffer toward specific provision for non-performing assets during 2015-16," it said.
During the quarter, the bank also raised Rs 800 crore by issuing Basel-III compliant tier II bonds.
Indian Overseas Bank's stock closed 0.40 per cent up at Rs 25.40 on BSE.