Indian Overseas Bank (IOB) reported a five-fold rise in net loss at ₹3,607 crore for the fourth quarter ended March 31, 2018, against ₹647 crore for the same quarter last year.

This was due to provisioning requirements, including higher provisions on account of RBI guidelines on revised framework on Resolution of Stressed Assets.

Revised framework

Pursuant to the revised framework, the bank classified the specific restructured accounts in accordance with extant IRAC norms, and made a provision of ₹799 crore towards such accounts during the current quarter, says a press release from the bank.

Revenue for the quarter marginally increased to ₹5,814 crore (₹5,662 crore).

Total recovery was ₹5,726 crore (₹2,729 crore), while total slippage stood at ₹9,868 crore.

Net NPA was ₹20,400 crore with ratio of 15.33 per cent as on March 31, 2018, against ₹19,749 crore with ratio of 13.99 per cent as on March 31, 2017. For the year ended March 31, 2018, the bank reported a net loss of ₹6,299 crore against ₹3,417 crore for the corresponding year, mainly due to an increase in provision by ₹2,937 crore.

Revenue declined to ₹21,662 crore (₹23,091 crore) on account of less treasury income and contraction of credit.

Interest income stood at ₹17,915 crore (₹19,719 crore) mainly due to additional slippage. Recovery in NPA accounts for year was significantly higher at ₹15,496 crore (₹8,710 crore)

As on March 31, 2018, the bank’s total business stood at ₹3,67,831 crore (₹3,68,119 crore). Total deposits increased to ₹2,16,832 crore (₹2,11,343 crore). The bank has reduced the concentration of bulk deposits and increased retail term deposits to have a stable deposit profile and reduce the cost of funds, the release added.

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