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Shares of Indian Overseas Bank dipped 6% to Rs 35.80 on the NSE in early morning trades after the state-owned bank reported a sharp 95% year-on-year (YoY) decline in net profit at Rs 14.76 crore for the quarter ended June 30, 2015 (Q1), on account of an increase in provisioning for bad loans and lower net interest income.
The public sector lender had posted a profit of Rs 272 crore in the corresponding quarter last year.
The bank's net interest income (interest earned minus interest expended) during the quarter under review declined by 6.9% at Rs 1,329 crore from Rs 1,427 crore a year ago.
Gross non-performing assets (NPAs) stood at 9.40% as on June 30, 2015 as against 5.84% during the same period last fiscal and 8.33% during the quarter ended March 31, 2015.
Net NPAs stood at 6.31% in the reported quarter as against 3.85% registered during the same period of the previous fiscal and 5.68% in the previous quarter.
The stock opened at Rs 36 and hit a 52-week low of Rs 35 on the NSE. Till 09:29 am, a combined 895,847 shares changed hands on the counter on the NSE and BSE.
The public sector lender had posted a profit of Rs 272 crore in the corresponding quarter last year.
The bank's net interest income (interest earned minus interest expended) during the quarter under review declined by 6.9% at Rs 1,329 crore from Rs 1,427 crore a year ago.
Gross non-performing assets (NPAs) stood at 9.40% as on June 30, 2015 as against 5.84% during the same period last fiscal and 8.33% during the quarter ended March 31, 2015.
Net NPAs stood at 6.31% in the reported quarter as against 3.85% registered during the same period of the previous fiscal and 5.68% in the previous quarter.
The stock opened at Rs 36 and hit a 52-week low of Rs 35 on the NSE. Till 09:29 am, a combined 895,847 shares changed hands on the counter on the NSE and BSE.
