Indian Overseas Bank's net loss has widened to Rs 36.06 billion during the quarter ended March 31, 2018, from Rs 6.46 billion during the same quarter last year, owing to higher provisioning as per the revised regulatory framework by RBI.
The increase in losses is mainly due to provisioning requirements, including higher provisions as per RBI guidelines on revised framework on Resolution of Stressed Assets, the bank said.
Following the revised framework, the bank has classified specific restructured accounts in accordance with extant Income Recognition and Asset Classification (IRAC) norms and made a provision of Rs 7.99 billion towards such accounts during the current quarter.
While the total recovery during the quarter was at Rs 57.26 billion as against the recovery of Rs 27.29 billion during quarter ended March 2017 while the total slippage for quarter ended March 2018 stood at Rs 98.68 billion mainly on account of the
Total income for the quarter ended March 31, 2018, grew close to three per cent to Rs 58.14 billion as compared to Rs 56.61 billion during same period of previous year.
Gross non-performing assets (GNPA) grew to Rs 381.8 billion, which is 25.28 per cent of the gross advances, as compared to Rs 350.98 billion (22.39 per cent) during same period last year. Net NPA grew to Rs 203.99 billion (15.33 per cent) as against Rs 197.49 billion (13.99 per cent) in the corresponding quarter of last year. Fresh slippage due to revised framework of stressed asset of Rs 36.29 billion.
Total business of the Bank stood at Rs 3,678.31 billion as on March 31, 2018 as against Rs 3,681.19 billion a year ago.