PSU lender Indian Overseas Bank has reported a net loss of ₹ 1450 crore for the quarter ended June 30, 2016 when compared with a net profit of ₹ 15 crore in a year-ago period. .

However, the bank’s operating profit was higher by 24 per cent at ₹ 690 crore when compared with ₹ 556 crore. Total expenses fell to ₹ 5178 crore from ₹ 6116 crore.

The bank’s asset quality continued to be impacted due to bad debts. It had to set aside ₹ 2,138 crore as provisions for bad loans when compared with the provisions of ₹ 664 crore it made in the year-ago period.

Gross NPA (non-performing assets) stood at ₹ 33,913 crore as of Q1 of this fiscal when compared with ₹ 16451 crore in the year-ago quarter. Net NPA was ₹ 21,321 crore as against ₹ 10,640 crore.

Gross NPA ratio increased sharply to 20.48 per cent from 9.40 per cent as of June 30, 2015 and 17.40 per cent as of March 30, 2016. Net NPA ratio was 13.97 per cent as against 11.89 per cent in the preceding quarter and 6.31 per cent as of June 30, 2015. Provision coverage ratio stood at 47.61 per cent of June 30, 2016.

Interest income of the bank fell to ₹ 5216 crore as against ₹ 6137 crore. Net interest income, the difference between interest earned and interest expended, also fell to ₹ 1245 crore from Rs.1,329 crore. However, other income grew sharply to ₹ 653 crore when compared with ₹ 535 crore.

Gross advances stood at ₹ 165,556 crore as on June 30, 2016 when compared with ₹ 174,963 crore as on June 30, 2015.

Total deposits stood at ₹ 218 484 crore as against ₹ 232,064 crore when compared with Rs. 221,879 in the year ago period, on account of reduction in high cost deposits.

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