Indian Overseas Bank has significantly reduced its net losses to ₹499 crore for the quarter ended June 30, compared with a net loss of ₹1,450 crore in the year-ago quarter.

The bank continued to report positive growth in operating profit, which rose 12 per cent to ₹777 crore (₹691 crore in Q1 FY17). The bank set aside ₹1,608 crore towards provisions and contingencies (₹2,138 crore).

Gross non-performing assets (GNPAs) in the reporting quarter stood at ₹35,453 crore (₹33,913 crore), and net NPAs, at ₹20,166 crore (₹21,321 crore).

The gross NPA ratio rose to 23.60 per cent (22.39 per cent in the March 2017 quarter and 20.48 per cent in Q1 FY17) and the net NPA ratio, to 14.97 per cent (13.99 per cent and 13.97 per cent).

Recoveries in NPA accounts were significantly higher at ₹2,784 crore (₹1,465 crore). The provision-coverage ratio improved to 53.09 per cent (47.61 per cent).

Interest income fell to ₹4,187 crore (₹5,216 crore) due to reduction of interest rates. Non-interest income grew 51 per cent to ₹987 crore (₹652 crore).

Gross advances stood at ₹1,50,238 crore as against ₹1,65,556 crore in Q1 of the previous fiscal.

“The decline in advances was due to the bank rebalancing the credit portfolio with focus on mid-corporate, retail and MSME segments,” according to a statement.

Total deposits stood at ₹2,10,748 crore (₹2,18,484 crore).

The bank has reduced the concentration of bulk deposits for a stable deposit profile and to reduce the cost of funds.

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