Indian Overseas Bank’s (IOB) net loss for the quarter ended March 31, 2019, narrowed by 45 per cent to ₹1,985 crore, against ₹3,607 crore recorded during March 31, 2018.

In a press statement, the company attributed the loss in FY 19 to NPA provisioning.

Asset quality of the bank improved during the quarter.

Gross NPA during the quarter ended March 2019 stood at ₹33,398 crore (21.97 per cent of the total advances), against ₹38,180 crore (25.28 per cent) recorded during the same period last year. Net NPA ratio also improved to 10.81 per cent as of March 31, 2019, from 15.33 per cent recorded for the corresponding period previous year. In absolute terms, net NPAs reduced to ₹14,368 crore (₹20,400 crore) year-on-year as on March 2019.

Total recovery during Q4 FY19 stood at ₹4,102 crore, while fresh slippages for the quarter accounted for ₹1,402 crore.

Recovery

The bank has referred cases worth ₹18,400 crore to National Company Law Tribunal (NCLT) and expects to recover about ₹6,299 crore this year, of which, about ₹3,000 crore of recovery is expected this quarter, a senior bank official said.

Operating profit of the bank marginally improved to ₹1,132 crore (₹1,129 crore) for the quarter ended March 2019.

On a yearly basis, operating profit grew at a healthy 38.71 per cent to ₹5,034 crore as on March 2019, against the ₹3,629 crore profit it clocked a year earlier.

Total income for the quarter stood at ₹5,474 crore (₹5,814 crore) on y-o-y basis as on March 2019, while interest income during the period witnessed a marginal drop at ₹4,556 crore (₹4,828 crore).

Gross advances on yearly basis stood at ₹1,51,966 crore as on March 2019 (₹1,50,999 crore).

The bank has rebalanced the credit portfolio to focus on retail, agri and MSME (RAM), which contributed 67.20 per cent as on March 2019, up from 66.14 per cent during March 2018.

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