QUARTER PLUNGE - IOB net dips 95% to Rs 14 crore on account of bad loans
Chennai
TNN
Indian Overseas Bank's net profit for the first quarter ending June 30 dipped 95% to `14 crore against the `271 crore earned during the same period last year.
“The decline was on account of sharp increase in provisioning for bad loans,“ said a senior IOB offi cial. Provisions and contingencies in the June quarter stood at `663 crore against `299 crore during the same quarter of the previous fiscal.
In absolute terms, IOB's gross (non-performing assets) NPAs continued to soar and stood at `16,451 crore on June 30 compared to `10,350 crore during the quarter ending June 30, 2014. Net NPA during the same period also rose to `10,640 crore as against `6,643 crore over the same period last year.
Gross NPAs on June 30, 2015 were 9.40% against the 5.84% in the same period last fiscal. Net NPA stood at 6.31% in the reported quarter against 3.85% as compared to the previous fiscal. Total business for the April-June 2015 quarter grew to `4,07,026 crore, up 1.96%, from `3,99,188 crore during the year-ago period.
Total deposits for the quarter grew to `2,32,064 crore from `2,21,879 crore in the same period in 2014. TNN
