Chinmaya IAS Academy – Current Affairs Chinmaya IAS Academy – Current Affairs
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Lender trims loss Rs. 342 crore from Rs. 919 crore, also aided by lower provisioning
Public Sector Indian Overseas Bank’s (IOB) net loss for the first quarter ended June 2019 narrowed to Rs. 342 crore from the Rs. 919 crore reported during the corresponding quarter last year, on lower provisioning and improved recovery, the bank said in a regulatory filing. During the period under review, IOB recovered Rs. 2,238 crore against Rs. 3,389 crore during the corresponding quarter last year. Total fresh slippages (other than debits to existing non performing asset accounts) stood at Rs. 2,050 crore. Recovery achieved is higher than slippages during the quarter mainly due to focussed efforts towards recovery, the bank said. Interest income stood at Rs. 4,336 crore (Rs. 4,249 crore). Net interest income rose to Rs. 1,288.50 crore from Rs. 1,208 crore while net interest margin widened to 2.01% from 1.92%. The bank made provisions and contingencies of Rs. 1,158 crore (Rs. 2,401 crore). The lender also increased its provision coverage ratio to 72.24% (61.10%). The proportion of current account-savings account (CASA) deposits improved to 38.05% from 36.85%. Gross non-performing asset (GNPAs) dipped to Rs. 33,262 crore with a ratio of 22.53% from Rs. 38,146 crore with a ratio of 25.64%. Net NPAs also came down to 11.04% from 15.10%. In actual terms, they stood at Rs. 33,262 crore against Rs. 38,146 crore.
For the first quarter, the bank posted a total business of Rs. 3,68,777 crore against Rs. 3,74,530 crore. Total deposits stood at Rs. 2,21,171 crore (Rs. 2,22,534 crore).
