Indian Overseas Bank share price fell in trade today after the lender reported widening of its net loss to Rs 2,253.64 crore for the second quarter ended September 30 compared to a net loss of Rs 487.26 crore in the corresponding quarter of the previous financial year. In the first quarter of the current financial year, it had posted a net loss of Rs 342 crore.
Indian Overseas Bank share price lost 13.19% to Rs 10.40 compared to the previous close of Rs 11.98 on BSE. Indian Overseas Bank share fell after five days of consecutive gain.
The mid cap stock opened 5.68% lower at Rs 11.30 on BSE. The stock has fallen 28.11% during last one year and lost 28.73% since the beginning of this year. Total income of the public sector lender during the second quarter of 2019-20 also fell to Rs 5,024 crore from Rs 5,348.35 crore in the corresponding period of 2018-19, the bank said.
The Chennai-based bank's asset quality remains elevated with gross non-performing assets (NPAs) standing at 20 percent (Rs 28,673.95 crore) of gross advances during the quarter, compared with 24.73 per cent (Rs 37,109.96 crore) in year-ago same period.
Net NPAs, however, were down to 9.84 percent (Rs 12,507.97 crore) from 14.34 (Rs 18,876.05 crore). Provisioning for bad loans and contingencies for the quarter rose to Rs 2,996.04 crore as against Rs 2,016.60 crore a year ago, the bank said. The lender said it has received an infusion to the tune of Rs 3,857 crore from the government towards contribution in the preferential allotment of equity shares of the lender.
By Aseem Thapliyal