Moneycontrol Bureau
Public sector lender - Indian Overseas Bank (IOB) reported a sharp fall of 46 percent year-on-year in its first quarter (April-June) net profit at Rs 126 crore, dented by a 62 percent spike in provisions and contingencies to Rs 843 crore.
Net interest income (NII) or the difference between interest earned and paid out, fell marginally by 1 percent to Rs 1,316 crore during the quarter.
However, other income more than doubled from Rs 377 crore to Rs 785 crore. Without this saving grace (other income component), IOB would have reported net loss of Rs 282 crore (Rs 785-377-126= 282). Other income is not considered as the core part of banking business.
IOB expanded its loans more than 12 percent to around Rs 1.67 lakh crore. The rise in credit came at the cost of credit quality. The gross non-performing asset (NPA) ratio shot up to 4.45 percent compared with 2.97 percent a year back. Net NPA ratio stood at 2.81 percent as against 1.48 percent.
In absolute terms, gross NPAs surged about 69 percent y-o-y to Rs 7,432 crore during the quarter. Net NPAs more than doubled from Rs 2,152 crore to Rs 4,580 crore y-o-y.
Deposits grew more than 6 percent y-o-y to Rs 1.96 lakh crore.
At 15:18 hours IST, the stock was quoting at Rs 45.55, down 3.60 percent after hitting a 52-week low of Rs 44.40.
saikat.das@network18online.com
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!
