Indian Overseas Bank (IOB) has trimmed its net loss by 64.37% to ₹346.02 crore in the third quarter ended December 2018 from ₹971.17 crore in the year-earlier period.
The bank posted a total income of ₹5,689 crore against ₹5,062 crore, an increase of 12.39%. Interest income improved by 6.75% to ₹4,542 crore (₹4,255 crore). Non-interest income rose 41.83% to ₹1,146 crore.
As of December 2018, gross non-performing assets (NPA) stood at ₹35,787 crore, representing 23.76% of gross advances, against ₹33,267 crore (21.95%). Net NPAs were contained at ₹17,988 crore or 13.56% of net advances against ₹17,761 crore (13.08%).
During the quarter, the bank made total recovery of ₹3,723 crore against ₹3,021 crore it recovered during the year-earlier period, while total fresh slippages for quarter ended December 18 was ₹1,790 crore, the bank said.
Recovery achieved is substantially higher than slippages during the quarter mainly due to focused priority action on arresting slippages and improving recovery in NPA/OTS accounts, said the bank in a statement.
During the quarter, IOB recovered ₹121 crore from National Company Law Tribunal (NCLT) accounts. The bank expects recovery aggregating ₹988 crore during the current quarter from eight NCLT accounts where resolution is at an advanced stage.
Total business of the bank stood at ₹3,10,901 crore against ₹3,68,128 crore. Total deposits registered an increase of 1.72% to ₹2,20,311crore (₹2,16,592 crore).
IOB reduced its concentration on bulk deposits and high-cost deposits while increasing focus on retail term deposits in a bid to have a stable and sustainable deposit profile and reduce the cost of funds, according to the statement.
The bank rebalanced its credit portfolio with retail, agri and MSME share of total domestic advances improving to 65.81% from 64.75%. Provision coverage ratio stood at 64.23%.