Bad loans pull Indian Overseas Bank's net down 95%

Indian Overseas Bank (IOB) reported a 94.56% decline in net profit at Rs 14.76 crore for the quarter ended June 30, 2015, compared to the same period last year, on sharp increase in provisioning for bad loans.

In the year ago period, the bank had reported a net profit of Rs 271.72 crore.

IOB's total income grew to Rs 6,672.11 crore in the quarter under review, up 6.16% from Rs 6,284.69 crore during the same period of 2014-15 fiscal.

Provisions and contingencies in the June quarter stood at Rs 663.57 crore as against Rs 299.27 in the same quarter of the previous fiscal.

Gross NPA of the bank as on June 30, 2015 stood at 9.40%, as against 5.84% during the same period last fiscal.

Net NPA stood at 6.31% in the reported quarter as against 3.85% registered during the same period of the previous fiscal.

Total business for the April-June 2015 quarter grew to Rs 4,07,026 crore, up 1.96%, from Rs 3,99,188 crore during the year-ago period.

The bank said its total deposits for the quarter grew to Rs 2,32,064 crore from Rs 2,21,879 crore in the year-ago period.

Its gross advances were Rs 1,74,962 crore and the provision coverage ratio stood at 50.79% as on June 30, 2015.