Indian Overseas Bank has reported a net loss of ₹554 crore for the quarter ended December 31, 2016, compared to a net loss of ₹1,425 crore in Q3 of the previous fiscal.
The bank has reduced its losses by 61 per cent during the December quarter through better operating profit, which grew 37 per cent to ₹855 crore as against ₹625 crore in the year-ago quarter.
Also, the bank has managed to prevent any big deterioration in asset quality on sequential basis. The gross non-performing asset (NPA) ratio stood at 22.42 per cent, compared to 12.64 per cent in Q3 of the previous fiscal and 21.77 per cent in Q2 of this fiscal.
The net NPA ratio was 14.32 per cent (8.32 per cent in the year-ago period and 14.30 per cent in the preceding quarter).
“The net NPA ratio increased slightly despite reduction in credit during the quarter,” said the statement.
Provisions and contingencies were lower at ₹1,406 crore (₹1,896 crore).
Interest income fell to ₹4,881 crore (₹5,913 crore). However, other income grew sharply to ₹718 crore (₹533 crore). Net interest margin improved to 2.14 per cent from 2.02 per cent in the September quarter.
During the quarter, the bank raised ₹800 crore by issuing Basel-III compliant Tier-II bonds.