 "IOB posts net loss of Rs 1,451 crore")
State-run Indian Overseas Bank, which has the highest bad loan ratio among the nation's lenders, reported on Tuesday a first-quarter net loss of Rs 1,451 crore ($217 million) with a further rise in its sour assets.
Bad loans as a percentage of total loans rose to 20.48% as of end-June from 17.4% three months earlier, the bank said in a filing.
Provisions, including for bad loans, more than tripled from a year earlier to Rs 2,138 crore in the three months to June 30.
The total income saw a decline of 12% to Rs 5,868 crore during the quarter as against Rs 6,672 crore recorded during the corresponding quarter of previous year.
The Capital Adequacy Ratio in Basel III is at 9.47%. The bank said that the government of India has allocated Rs 3,101 crore by way of preferential allotment of equity and 50 per cent of this amount, Rs 1,551 crore, is marked for immediate infusion. With the fund infusion, the Capital Adequacy Ratio of the bank will be above the regulatory minimum of 9.625 per cent, it added. After the capital infusion, it would be at 10.37 per cent.
The net interest margin for the quarter ended June 30, 2016, stood at 1.87 per cent, it stated.
The bank has migrated to Finacle as its operating system and will be conducting comprehensive migration audit in the near future to address all issues connected with migration, it added.
