Indian Overseas Bank's net loss has come down to Rs 342.08 crore during the quarter ended June 30, 2019, from a loss of Rs 919.44 crore during the same quarter last year.
The bank's total income declined six per cent to Rs 5,006.48 crore during the quarter, from as Rs 5,326.71 crore during the corresponding quarter of previous year.
Its gross non-performing assets (NPA) as a percentage of gross advances declined to 22.53 per cent (Rs 33,262 crore) from 25.64 per cent (Rs 38,146.05 crore) a year ago. Net NPA also has declined to 11.04 per cent (Rs 14,173.84 crore) from 15.10 per cent (Rs 19,641.81 crore) during corresponding quarter last year.
The lender has recovered Rs 2,238 crore during the quarter, as against Rs 3,389 crore during the same quarter last year, with a fresh slippage (other than debits to existing NPA accounts) of Rs 2,050 crore. Recovery is higher than slippages during the quarter, the bank said. Provision coverage ratio has been improved to 72.24 per cent as on June 30, 2019 compared to 61.10 per cent during same period last year.
Gross Advances stood at Rs 1,47,606 crore as on June 30, 2019 as against Rs 1,48,760 crore as on June 30, 2018. The Bank has evolved a policy of not taking fresh exposures in stressed sectors, below hurdle rated accounts, accounts classified as BB and below rated accounts. The Bank has also exited from accounts in the stressed sectors, it said.
The Bank has re-balanced the credit portfolio with RAM's (Retail, Agri and MSME) share of total domestic advances improving from 66.04 per cent to 68.07 per cent YoY (June 2019 over June 2018). It also increased its share of accounts rated A and above by 25.05 per cent over June, 2018 and 4.55 per cent over March, 2019.
Provisions and contingencies for the quarter stood at Rs 1,170.24 crore, as compared to Rs 2,051.47 crore during the same quarter last year.
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First Published: Tue, July 23 2019. 14:52 IST
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