Indian Overseas Bank Q2 loss widens to Rs 1,222 cr

Public sector Indian Overseas Bank (IOB) today reported widening of its net loss by nearly 60 per cent at Rs 1,222.50 crore for second quarter ended September.
The bank had a net loss of Rs 765.13 crore in the July- September quarter of 2016-17.
IOB said the loss is due to provisioning against the bad loans and not due to operations.
"Net loss is due to increase in the provision by 77.3 per cent over June 2017 and 23.6 per cent over September 2016 and the quantum of additional provision made was Rs 985.04 crore during September 2017," it added.

Bank's gross non-performing assets (NPAs) jumped to 22.73 per cent of the gross advances by the end of September 2017 at Rs 34,708.59 crore, up from 21.77 per cent of the gross advances as on September 2016 that amounted Rs 34,724.12 crore.
However, net NPAs or bad loans were cut a tad at 13.86 per cent of the net loans by September 2017 (Rs 18,949.55 crore) against 14.30 per cent at end-September 2016 (Rs 20,765.31 crore).

Thus, the bank had to park aside a sizable Rs 2,238.09 crore as provisions for bad loans and contingencies for July- September period of 2017-18, against Rs 1,694.04 crore it had kept for second quarter of 2016-17.

Also, total income of the bank fell to Rs 5,610.35 crore during the second quarter of the current fiscal from Rs 5,961.62 crore a year ago.
Shares of the bank closed 2.69 per cent down at Rs 25.30 apiece on the BSE.