Indian Overseas Bank (IOB) posted a net loss of ₹919.44 crore for the first quarter ended June 30, against a net loss of ₹499.09 crore in the year-earlier period, mainly as a result of a 60.8% increase in provisioning.
Total income for the quarter rose 2.94% year-on-year to ₹5,326.71 crore, from ₹5,174.50 crore.
Interest income increased to ₹4,248.60 crore, from ₹4,187.20 crore, the public sector lender said in a statement on Friday.
Gross NPAs rise
Gross NPAs (non-performing assets) rose to ₹38,146 crore from ₹35,453 crore, while net NPAs shrank to ₹19,642 crore from ₹20,166 crore. The bank’s provision coverage ratio was 61.10%.
Provisions and contingencies for the quarter ended June were ₹2,051.47 crore against ₹1,275.69 crore a year earlier, marking an increase of ₹775.78 crore.
During the period under review, the total recovery of the bank was ₹3,389 crore against ₹2,784 crore in the year-earlier period, while the total slippage for the quarter ended June 2018 stood at ₹1,994 crore.
The recovery achieved was substantially higher than slippages during the quarter mainly due to resolution in NCLT accounts coupled with focused efforts on recovery, the Chennai-based bank said in the statement.
During the quarter, IOB recovered ₹454 crore in three NCLT accounts. Further, the bank expects recovery aggregating ₹950 crore in the current quarter in four NCLT accounts where resolution is at an advanced stage.