 "Provisioning hit IOB's Q3 results as net loss widens to Rs 1,425 cr")
Indian Overseas Bank’s net loss has widened to Rs 1,425 crore during the quarter ended December 31, 2015, compared with Rs 516 crore in the year-ago period.
The public sector lender ascribed the poor performance to “increased provisions for domestic and overseas advances including provisions made for asset quality review as per Reserve Bank of India directions”.
The bank’s total income stood at Rs 6,446 crore during the December 2015 quarter, down three per cent from Rs 6,647 crore a year ago.
The gross non-performing asset (NPA) has risen to Rs 22,672 crore during the quarter with gross NPA ratio of 12.64 per cent, compared to Rs 14,500.51 crore (NPA ratio: 8.12 per cent) during the year-ago quarter. Net NPA grew to Rs 14,174 crore during the quarter under review with net NPA ratio of 8.32 per cent, compared with Rs 9,511.15 crore and 5.52 per cent in the corresponding quarter of FY15.
The return on assets on an annualised percentage stood at a negative 1.89 per cent against a negative 0.72 per cent.
The net interest margin stood at 1.93 per cent during the quarter, while it was 2.03 per cent during the quarter ended September 30, 2015, said the bank.
The public sector lender ascribed the poor performance to “increased provisions for domestic and overseas advances including provisions made for asset quality review as per Reserve Bank of India directions”.
The bank’s total income stood at Rs 6,446 crore during the December 2015 quarter, down three per cent from Rs 6,647 crore a year ago.
The gross non-performing asset (NPA) has risen to Rs 22,672 crore during the quarter with gross NPA ratio of 12.64 per cent, compared to Rs 14,500.51 crore (NPA ratio: 8.12 per cent) during the year-ago quarter. Net NPA grew to Rs 14,174 crore during the quarter under review with net NPA ratio of 8.32 per cent, compared with Rs 9,511.15 crore and 5.52 per cent in the corresponding quarter of FY15.
The return on assets on an annualised percentage stood at a negative 1.89 per cent against a negative 0.72 per cent.
The net interest margin stood at 1.93 per cent during the quarter, while it was 2.03 per cent during the quarter ended September 30, 2015, said the bank.