Indian Overseas Bank’s net loss widened to 765 crores during the second quarter (Q2), this financial year due to hike in provisions for bad loans. Indian Overseas Bank had reported a net loss of Rs. 550 crores during the first quarter, which ended in June this year. The gross revenue of the bank fell to Rs. 5,961 crores this quarter as opposed to gross revenue of Rs. 6,770 crores during the same quarter, last year. Provisions for bad loans and contingencies increased to Rs. 1,697 crores this quarter when compared to provisions amounting to Rs. 1,557 crores during the same quarter, last financial year. Read more on Loses
As the asset quality dropped, Indian Overseas Bank’s gross non-performing assets (NPAs) as a percentage of the total of loans given, increased to 21.77 percent as on September 2016, from 11 percent a year ago. The gross NPAs of the bank, this quarter, stood at Rs. 34,724 crores when compared to gross NPAs of Rs. 19,423 crores during the same quarter last year. Indian Overseas Bank said that the increase in gross NPAs is mainly due to a reduction in asset size. “Recovery of NPA accounts for the half year that ended on September 30th, 2016 is Rs. 3,534 crores and during this quarter, it is Rs 2069 crores”, Indian Overseas Bank said.
Net NPAs or bad loans hit 14.30 percent of net advances by the end of September, 2016, (Q2) from 7.41 percent during the same quarter, last financial year. In terms of value, the net NPAs stood at Rs. 20,765 crores, this quarter as opposed to net NPAs of Rs. 12,539 crores, during the same quarter, last year. Indian Overseas Bank also said that its Executive Director, R Subramaniakumar will be assigned additional posts as the MD and CEO of the bank from today. “R Subramaniakumar, Executive Director, of the bank has been entrusted with the additional charges as the Managing Director & CEO of the bank with immediate effect according to the Ministry of Finance, notification dated November 12th, 2016”, Indian Overseas Bank’s spokesperson said. Read more on Startup News
Launch Your Mobile App in 6 weeks. Learn More "Convert your Idea in to business".