Indian Overseas Bank widens net loss to Rs 2,254 cr in Sept quarter

State-owned Indian Overseas Bank on Monday reported widening of its net loss to Rs 2,253.64 crore for the second quarter ended September 30.

The bank had registered a net loss of Rs 487.26 crore in the corresponding quarter of the previous financial year. In the first quarter of the current financial year, it had posted a net loss of Rs 342 crore.

Total income during the second quarter of 2019-20 also fell to Rs 5,024 crore from Rs 5,348.35 crore in the corresponding period of 2018-19, the bank said in a regulatory filing.

The bank's asset quality remains elevated with the gross non-performing assets (NPAs) standing at 20 per cent (Rs 28,673.95 crore) of gross advances during the quarter, compared with 24.73 per cent (Rs 37,109.96 crore) in year-ago same period.

Net NPAs, however, were down to 9.84 per cent (Rs 12,507.97 crore) from 14.34 (Rs 18,876.05 crore).

The provisioning for bad loans and contingencies for the quarter rose to Rs 2,996.04 crore as against Rs 2,016.60 crore a year ago, the bank said in the filing.

Indian Overseas Bank said it has received an infusion to the tune of Rs 3,857 crore from the government towards contribution in the preferential allotment of equity shares of the lender.

"The bank has restructured 9,098 MSME (micro, small and medium enterprise) accounts and treated them as standard assets amounting to Rs 450.98 crore up to September 30, and maintained a provision of Rs 23.58 crore on such standard assets," it said.

Stock of Indian Overseas Bank closed at Rs 11.98 apiece on the BSE, up 9.81 per cent from the previous close.