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Indian Overseas Bank Q2 loss widens to Rs 2,254 crore, asset quality improves

Indian Overseas Bank Q2 results: For the quarter ended September 2019, the lender logged total revenue of Rs 5,024 crore as compared to Rs 5,348.35 crore during the same quarter last year

twitter-logoBusinessToday.In | November 4, 2019 | Updated 18:21 IST
Indian Overseas Bank Q2 loss widens to Rs 2,254 crore, asset quality improves
Indian Overseas Bank Q2 results: Non-interest income or other income increased to Rs 748.35 crores in Q2FY20 from Rs 1,064.61 crores in Q2FY19

Public lender Indian Overseas Bank on Monday reported widening of net loss to Rs 2,253.64 crore for the second quarter ended September 30, 2019, on account of rise in operating expenses as well as provisions.

"The bank had posted net loss of Rs 487.26 crore during the same quarter last year," Indian Overseas Bank (IOB) said in a filing to the Bombay Stock Exchange (BSE).

For the quarter ended September 2019, the lender logged total revenue of Rs 5,024 crore as compared to Rs 5,348.35 crore during the same quarter last year.

The operating profit of the bank decreased to Rs 746.01 crore as against Rs 1304.19 crore in the corresponding quarter last year.

Also Read: HDFC Q2 net profit surges 60% to Rs 3,961 crore, revenue up 10%

The Chennai-headquartered bank provided for Rs 2,996.04 crore towards provisioning and contingencies during September quarter of this fiscal, versus Rs 2,016.60 crore in the year-ago quarter.

The public sector lender's net interest income (NII), which is the difference between interest earned and interest expended, decreased marginally to Rs 4275.65 crore in Q2FY20 versus Rs 4,283.74 crore in Q2FY19, Indian Overseas Bank said.

Non-interest income or other income increased to Rs 748.35 crores in Q2FY20 from Rs 1,064.61 crores in Q2FY19.

Also Read: SBI Q2 profit jumps three-fold to Rs 3,012 crore on higher net interest income

On the asset front, gross non-performing assets (NPA) as a percentage of advances declined to 20 per cent versus 24.73 per cent in the year-ago quarter. Net NPAs also slipped to 9.84 per cent in the second quarter from 14.34 per cent in the year-ago period.

During July-September quarter, gross NPA in absolute term stood at Rs 28,673.95 crore as against Rs 37,109.96 crore during Q2FY20.

Ahead of Q2 earnings, shares of Indian Overseas Bank closed 9.81 per cent higher at Rs 11.98 apiece on the Bombay Stock Exchange on Monday.

Edited by Chitranjan Kumar

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