Indian Overseas Bank saw its net profit drop 16 per cent to Rs 132 crore in the second quarter ended September 30, from Rs 158 crore in the comparable previous-year quarter. Total income during the quarter rose a little over 8 per cent to Rs 6,000 crore, from Rs 5,515 crore in the year-ago period.
M. Narendra, Chairman and Managing Director of the bank, attributed the drop in profits to the Rs 400-crore loss of treasury income ( due to the volatile rupee) and Rs 96-crore loss on transfer of SLR securities worth Rs 4,711 crore from AFS (available-for-sale) category to HTM (held-to-maturity) category.
The bank reported gross NPAs (non-performing assets) of Rs 8,201 crore (4.65 per cent) at the end of the quarter against Rs 5,930 crore (2.25 per cent) last year. Net NPAs too, rose to Rs 4,875 crore (Rs 3,378 crore in the previous year).
Despite the slowing economy, the bank saw loan slippages drop 37 per cent to Rs 1,167 crore. Restructured accounts too, came down to 9.74 per cent (Rs 17,174 crore) from 11 per cent (Rs 18,356 crore) in the previous quarter.
On the recovery front, IOB managed cash recoveries of Rs 222.63 crore against Rs 198.58 crore in the same period last year.
Provision-coverage ratio as on end-September stood at 59.34 per cent. Net interest margin improved to 2.31 per cent from 2.24 per cent. Book value per share has come down to Rs 120.48 from Rs 125.79 in the same period last year.
ravikumar.r@thehindu.co.in