Indian Overseas Bank Q3 result, Loss nearly halves to Rs554.44 crore

Indian Overseas Bank on Tuesday said it nearly halved its third-quarter loss from a year earlier, helped by higher other income and lower provisions against bad loans.

The public sector lender reported a loss of Rs554.44 crore for the quarter ended 31 December, compared with a loss of Rs1,425 crore in the same quarter a year earlier.The bank reported net interest income (NII)--or the difference between interest earned on loans and that spent on deposits—of Rs1,334.76 crore in the October-December period, marginally lower than Rs1,348 crore a year earlier.

Other income rose 34.6% on a year-on-year basis to Rs718 crore.Provisions during the third quarter dropped 26% on a year-on-year basis to Rs1,406 crore. In the July-September quarter, the bank had set aside provisions worth Rs1,697 crore.

Gross non-performing assets (NPAs) dropped marginally by 0.64% on a quarter-on-quarter basis to Rs34,502 crore in the December quarter. Net NPA were reported at Rs19,900.75 crore, down 4.16% sequentially.During the quarter, the bank recovered loans worth Rs2,446 crore, it said in a statement to the exchanges. In the first nine months of this financial year, the total recovery was at Rs5,981 crore.

As a share of total loans though, gross NPAs rose to 22.42% in the October-December period as compared with 21.77% in the July-September quarter.The bank’s total advances dropped 3.5% quarter-on-quarter to Rs1.54 trillion, as on 31 December. Total deposits were reported at Rs2.1 trillion, compared with Rs2.08 trillion in the quarter ended 30 September.