Indian Overseas Bank has reported a 95 per cent drop in net profit for the first quarter of the current year as compared with the corresponding quarter previously.
Higher provisioning as NPA jumped and increase in employee costs contributed to the performance.
For the quarter ended June 30, 2015, the bank has reported a net profit of ₹ 14.76 crore (₹ 271.72 crore), down 18-times despite a small growth in total income at ₹6,672.11 crore (₹ 6,284.69 crore).
Gross NPA was up nearly 60 per cent ₹ 16,451 crore (₹ 10,350 crore) and Net NPA too jumped 60 per cent to ₹ 10,640.43 crore (₹ 6,643.62 crore). Employee cost grew 38 per cent to ₹ 947.39 crore (₹ 684.34 crore).