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Indian Overseas Bank (IOB) today reported a net loss of Rs. 516.03 crore for the quarter ended December 2014 due to higher provisioning for bad loans.
The Chennai-based lender had earned a net profit of Rs. 75.07 crore in the October-December quarter of 2013-14.
IOB is the first public sector lender to post a loss during the quarter among banks which have announced their results.
The net loss is due to increased provisioning for domestic and overseas advances and also due to the bank’s conscious decision to contain its credit growth, IOB said in a statement.
The poor performance pulled the bank's share price down by nearly 10 per cent to Rs. 50.50 on the BSE after the numbers were announced.
Gross NPAs as a percentage of total advances rose to 8.12 per cent from 5.27 per cent in the same quarter a year ago.
Its net NPAs went up to 3.52 per cent from 3.24 per cent at the end of December 2013, IOB said in a statement.
Gross NPAs in absolute terms rose to Rs. 14,500.51 crore as compared to Rs. 9,168.08 crore at the end of December 2013.
As a result of this, total provisions, excluding for income-tax, rose to Rs. 1,183.04 crore as against Rs. 811.24 crore in the year-ago period.
However, the total income increased to Rs. 6,647.45 crore for the quarter ended December 31, 2014 from Rs. 6,190.26 crore in the same quarter last fiscal.
Operating profit also declined to Rs. 726.32 crore as against Rs. 960.73 crore in the year-ago period.
However, the net interest income improved marginally to Rs. 1,356.85 crore as compared to Rs. 1,344.45 crore in the same quarter a year ago.
The net interest margin stood at 2.05 per cent at the end of the third quarter.
During the first three quarters of 2013-14, IOB registered a net loss of Rs. 489.82 crore as against a profit of Rs. 333.41 crore in the year-ago period.
Total business, as on December 31, stood at Rs. 4,11,354 crore, as against Rs. 3,87,406 crore at the end of the third quarter of 2012-13, registering 6.18 per cent growth.
Source : Thehindubusinessline
The Chennai-based lender had earned a net profit of Rs. 75.07 crore in the October-December quarter of 2013-14.
IOB is the first public sector lender to post a loss during the quarter among banks which have announced their results.
The net loss is due to increased provisioning for domestic and overseas advances and also due to the bank’s conscious decision to contain its credit growth, IOB said in a statement.
The poor performance pulled the bank's share price down by nearly 10 per cent to Rs. 50.50 on the BSE after the numbers were announced.
Gross NPAs as a percentage of total advances rose to 8.12 per cent from 5.27 per cent in the same quarter a year ago.
Its net NPAs went up to 3.52 per cent from 3.24 per cent at the end of December 2013, IOB said in a statement.
Gross NPAs in absolute terms rose to Rs. 14,500.51 crore as compared to Rs. 9,168.08 crore at the end of December 2013.
As a result of this, total provisions, excluding for income-tax, rose to Rs. 1,183.04 crore as against Rs. 811.24 crore in the year-ago period.
However, the total income increased to Rs. 6,647.45 crore for the quarter ended December 31, 2014 from Rs. 6,190.26 crore in the same quarter last fiscal.
Operating profit also declined to Rs. 726.32 crore as against Rs. 960.73 crore in the year-ago period.
However, the net interest income improved marginally to Rs. 1,356.85 crore as compared to Rs. 1,344.45 crore in the same quarter a year ago.
The net interest margin stood at 2.05 per cent at the end of the third quarter.
During the first three quarters of 2013-14, IOB registered a net loss of Rs. 489.82 crore as against a profit of Rs. 333.41 crore in the year-ago period.
Total business, as on December 31, stood at Rs. 4,11,354 crore, as against Rs. 3,87,406 crore at the end of the third quarter of 2012-13, registering 6.18 per cent growth.
Source : Thehindubusinessline
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