Public Sector Indian Overseas Bank’s (IOB) net loss for the first quarter ended June 2019 narrowed to ₹342 crore from the ₹919 crore reported during the corresponding quarter last year, on lower provisioning and improved recovery, the bank said in a regulatory filing.
During the period under review, IOB recovered ₹2,238 crore against ₹3,389 crore during the corresponding quarter last year.
Total fresh slippages (other than debits to existing non performing asset accounts) stood at ₹2,050 crore.
Recovery achieved is higher than slippages during the quarter mainly due to focussed efforts towards recovery, the bank said.
Interest income stood at ₹4,336 crore (₹4,249 crore). Net interest income rose to ₹1,288.50 crore from ₹1,208 crore while net interest margin widened to 2.01% from 1.92%.
The bank made provisions and contingencies of ₹1,158 crore (₹2,401 crore).
The lender also increased its provision coverage ratio to 72.24% (61.10%). The proportion of current account-savings account (CASA) deposits improved to 38.05% from 36.85%.
Gross non-performing asset (GNPAs) dipped to ₹33,262 crore with a ratio of 22.53% from ₹38,146 crore with a ratio of 25.64%. Net NPAs also came down to 11.04% from 15.10%. In actual terms, they stood at ₹33,262 crore against ₹38,146 crore.
For the first quarter, the bank posted a total business of ₹3,68,777 crore against ₹3,74,530 crore. Total deposits stood at ₹2,21,171 crore (₹2,22,534 crore).
Stressed sector policy
The bank said it had evolved a policy of not taking fresh exposures in stressed sectors. It had also exited from accounts in the stressed sectors.
IOB also rebalanced the credit portfolio, with retail, agri and MSME sector share of total domestic advances rising to 68.07% from 66.04%.
