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Indian Overseas Bank trims Q2 loss at Rs 487cr on lower provisions

Indian Overseas Bank trims Q2 loss at Rs 487cr on lower provisions

New Delhi, Oct 26 (PTI) State-owned Indian Overseas Bank (IOB) Friday reported narrowing of its net loss to Rs 487.26 crore in the second quarter ended September 2018 on lower provisioning.The bank had registered a net loss of Rs 1,222.50 crore in the year-ago period. Sequentially also, its net loss narrowed from Rs 919.44 crore in the first quarter ended June of the current fiscal."Net loss is due to provisions on bad debts and investment and not due to operations," the bank said in a release.Total income fell to Rs 5,348.35 crore during July-September 2018-19 from Rs 5,610.35 crore in same period a year ago, IOB said in a regulatory filing.Bank's asset quality deteriorated with the gross non-performing assets (NPAs) rising to 24.73 per cent of gross loans by the end of the second quarter as against 22.73 per cent as on end-September 2017. Though it was down when compared sequentially from 25.64 per cent at end-June.Net NPAs also rose year-on-year to 14.34 per cent from 13.86 per cent, sequentially down from 15.10 per cent.In absolute terms, gross NPAs were Rs 37,109.96 crore as on September 30, 2019 from Rs 34,708.59 crore by September 2017. Net NPAs or bad loans were Rs 18,876.05 crore as against Rs 18,949.55 crore.Provisions for bad loans and contingencies came down to Rs 2,016.60 crore for the reported quarter from Rs 2,238.09 crore.IOB said it received government capital infusion of Rs 2,157 crore on July 23 against preferential allotment of equity shares and has added the same as tier I equity capital.The provision coverage ratio of the bank as on September 30 stood at 61.97 per cent.Deposits as on September 30, 2018 stood at Rs 2.23 lakh crore and advances were Rs 1.50 lakh crore.Total business registered an increase of 3.12 per cent and stood atRs 3.73 lakh crore by the end of September 2018 against Rs 3.62 lakh crore as on June 30, 2018.IOB said its total recovery registered an increase of 12.53 per cent to Rs 4,462 crore for quarter ended September as against the recovery of Rs 3,965 crore a year ago.The total fresh slippage for quarter ended stood at Rs 884 crore from slippage of Rs 2,693 crore a year ago."Recovery achieved is substantially higher than slippages during the quarter mainly due to focused efforts towards recovery and containment of NPAs (fresh slippage and other debits in existing NPA accounts)," it said.Further, the bank has recovered Rs 247 crore in six NCLT accounts duringthe September quarter and expects further recovery aggregating Rs 802 crore in the third quarter in two NCLT accounts where resolution is at an advanced stage.Stock of IOB closed 6.95 per cent up at Rs 14 apiece on the BSE. PTI KPM MKJ