In a regulatory filing to the stock exchange BSE, the city-based bank said total income, however, increased 7 per cent to Rs 4,856 crore in the quarter under review from Rs.4,592 crore in same period year ago.
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Takkar has earlier said his bank was focussing on “pro-active management of asset health” through close monitoring of loan accounts and going all out to recover bad loans to bring down NPA level.
IOB’s gross non-performing assets (NPAs) stood at Rs 33913.15 crore as on 30 June 2016 as against Rs 16451.20 crore as on 31 March 2015 and Rs 30048.63 crore as on 30 June 2015.
Consequently, the reserves against bad loans was at Rs 1,250.50 crore, up from Rs 765.56 crore in the same period a year ago.
Power Finance Corp: State-run Power Finance Corp (PFC) posted a 8.64 per cent rise in standalone net profit at Rs 1,712.55 crore for the quarter ended June 30, on the back of higher interest income. The move came after the bank’s gross bad loans ratio widened to 11% of its gross advances at the end of the September 2015 quarter. In the March quarter it posted a net loss of Rs 413 crore. Last year, IOB had booked a profit of 14.76 crore in the comparable quarter.
In absolute terms, gross NPAs at the end of the June this year were Rs.33,913 crore, up almost 13% from Rs.30,048.63 crore at the end of March.
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The degrowth in profit was on account of increase in provisions, bank’s chairman and managing director Arun Tiwari had said. Total income at the bank shrunk 12% to 5,868.44 crore as it saw its interest earned from loan advances and income from investments diminish. The bank said the government has made a decision to allocate tune of 3,101 crore by way of a preferential allotment of equity in favour of itself. The stock hit a high of Rs 26.50 and a low of Rs 25.90 so far during the day.
