Indian Overseas Bank’s Q4 net loss widens to ₹3,606.73 crore on bad loans

The bank had registered a net loss of ₹646.66 crore in the same quarter of previous fiscal.

Public sector lender Indian Overseas Bank’s net loss widened to ₹3,606.73 crore in the March quarter due to higher provisioning for mounting bad loans.

The bank had registered a net loss of ₹646.66 crore in the same quarter of previous fiscal.

Its net income stood at ₹5,814.42 crore during the fourth quarter of 2017-18 from ₹5,661.70 crore in same period a year-ago, the bank said in a BSE filing.

The bank’s provisions for bad loans and contingencies increased sharply to ₹6,774.55 crore during the March quarter from ₹1,789.74 crore a year earlier.

Asset quality worsened with gross non-performing assets (NPAs) at 25.28 % of gross advances at the end of March from 22.39 % in the year-ago period.

Net NPAs were at 15.33 % of net loans, up from 13.99 % in the last quarter of 2016-17.

For the full financial year 2017-18, the bank’s net loss rose to ₹6,299.49 crore from ₹3,416.74 crore in 2016-17.

Its net income remained lower at ₹21,661.65 crore as against ₹23,091.25 crore in the said period.

Shares of Indian Overseas Bank were trading 2.40 % lower at ₹16.25 apiece on BSE.