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Indian Overseas Bank spurts on turnaround Q4 performance

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Capital Market
Last Updated : Jun 25 2020 | 4:17 PM IST

Indian Overseas Bank hit an upper circuit of 10% at Rs 11.99 after the bank reported a net profit of Rs 143.79 crore in Q4 FY20 compared with net loss of Rs 1,985.16 crore in Q4 FY19.

Total income remained almost flat at Rs 5,484.06 crore during the quarter. Profit before tax in Q4 March 2020 stood at Rs 83.48 crore as against a pre-tax loss of Rs 3,370.42 crore in Q4 March 2019.

The bank reported an exceptional income of Rs 53.31 crore in the quarter. It represents exchange difference recognised as income on account of disposal of net investment in respect of one of the foreign branches.

Provisions and contingencies fell 76.4% to Rs 1,060.38 crore in Q4 March 2020 from Rs 4,501.92 crore in Q4 March 2019. The provision coverage ratio of the bank as on 31 March 2020 stood at 86.94% as against 71.39% as on 31 March 2019.

"During the year ended 31 March 2020, loans and advances amounting to Rs 6492.53 crore have been classified as fraud in terms of RBI guidelines and he bank holds 100% provision in respect of such advances," the bank said.

Gross non-performing assets (NPAs) stood at Rs 19,912.70 crore as on 31 March 2020 as against Rs 23,733.86 crore as on 31 December 2019 and Rs 33,398.12 crore as on 31 March 2019.

The ratio of gross NPAs to gross advances stood at 14.78% as on 31 March 2020 as against 17.12% as on 31 December 2019 and 21.97% as on 31 March 2019.

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The ratio of net NPAs to net advances stood at 5.44% as on 31 March 2020 as against 5.81% as on 31 December 2019 and 10.81% as on 31 March 2019.

The bank reported net loss of Rs 8,527.40 crore the year ended March 2020 (FY20) compared with net loss of Rs 3,737.88 crore the year ended March 2019 (FY19). Total income fell 5.2% to Rs 20,712.48 crore in FY20 over FY19.

Deposits stood at Rs 2,22,951.88 crore as on 31 March 2020 as compared to Rs 2,22,534.08 crore as on 31 December 2019. Advances fell 8.5% to Rs 1,21,333.41 crore in FY20 from Rs 1,32,597.63 crore as on 31 December 2019.

Government of India held 95.84% stake in Indian Overseas Bank as on 31 March 2020.

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First Published: Jun 25 2020 | 3:24 PM IST

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