Indian Overseas Bank Q4 results: Reports net profit at Rs 144 crore

The city-headquartered bank had reported a net loss at Rs 1,985.16 crore during corresponding quarter previous year.

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Total income for the quarter under review stood at Rs 5,484.06 crore as against Rs 5,473.92 crore registered in the same period last fiscal.
Kolkata: State-owned Indian Overseas Bank has booked net profit after 18 straight quarters while reported net non-performing below 6 percent for two consecutive quarters, making itself a contender to get out of Reserve Bank of India's prompt corrective action (PCA) framework, which puts restrictions on lending, branch expansion and dividend distribution.

IOB's net profit was at Rs 144 crore in the quarter to March compared with Rs 199 crore net loss in the year ago period.

"Making profit will not be a one-off thing. This is going to be sustainable," IOB chief executive Karnam Sekar said after the release of the bank's quarterly earnings. He said that provision coverage ratio was at 87 percent at the end of the reporting period March from 71 percent a year back, and therefore future provision requirement would come down.


Sekar is slated to hang up his boots at the end of June while State Bank of India's deputy managing director Partha Pratim Sengupta's is tipped to succeed him.

The bank's operating profit marginally rose to Rs 1144 crore compared with Rs 1132 crore in period under review while steep fall in provisioning to Rs 1060 crore from 4502 crore helped the bank to be back in black.

Its gross advances shrunk to Rs 1.35 lakh crore at the end of March against Rs 1,52 lakh crore a year back, The CEO said that its lending very selectively and not taking fresh exposures in stressed sectors.
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"The situation continues lo be uncertain and the bank ls closely monitoring the situation," the bank said in its regulatory filing to stock exchanges.

Its gross NPA ratio improved to 14.78 percent as on March, down from 17.12 percent a quarter back while the net ratio improved further to 5.44 percent from 5.81 percent in the same period.

IOB has restructured 19043 MSME accounts and treated them as standard assets aggregating to Rs 694 crore as on Morch 31. It has also made an adhoc provision of Rs 460 crore towards revision of wages which is due since November 2017.

Owned 96 percent by the government, the bank's capital adequacy ratio now stands at 10.72 percent. Its stock price rose 10 percent Thursday to Rs 11.99 on BSE.
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