Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessEarnings

Indian Overseas Bank narrows Q1 loss to Rs 342 cr, asset quality weakens

The bank achieved Rs 2,238 crore recovery and reported fresh slippages at Rs 2,050 crore for the quarter ended June 2019

July 23, 2019 / 02:16 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Public sector lender Indian Overseas Bank narrowed its June quarter loss to Rs 342 crore on lower provisions YoY but asset quality weakened further sequentially.

Elevated provisions, lower other income and operating income, and slow revenue growth affected bottomline. The lender reported a loss of Rs 919.4 crore in quarter ended June 2018.

Net interest income during the quarter grew 6.7 percent to Rs 1,288.5 crore compared to year-ago with subdued loan growth.

Advances fell 0.77 percent to Rs 1.47 lakh crore while deposits grew 3.75 percent year-on-year to Rs 2.21 lakh crore at end of June quarter 2019.

Asset quality weakened further with gross non-performing assets (NPA) as a percentage of gross advances rising 56bps sequentially to 22.53 percent and net NPA increasing 23bps to 11.04 percent in Q1.

Provisions for bad loans dipped sharply to Rs 1,158 crore at the end of June quarter, against Rs 4,502 crore in previous quarter and Rs 2,401 crore in a year-ago period.

The bank achieved Rs 2,238 crore recovery and reported fresh slippages at Rs 2,050 crore for the quarter ended June 2019.

Operating profit during the quarter dropped 27 percent to Rs 828.15 crore and other income (non-interest income) slipped 38 percent to Rs 670 crore compared to year-ago.

The stock was quoting at Rs 11.80, up Rs 0.09, or 0.77 percent on the BSE at 1340 hours IST.

Moneycontrol News
first published: Jul 23, 2019 02:16 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347