Indian Overseas Bank Q2 net loss widens to Rs765.13 crore on falling interest income

Indian Overseas Bank’s net interest income fell 8.03% to Rs1,285.81 crore from Rs1,398.06 crore in the corresponding period last year


Indian Overseas Bank’s provisions during the quarter increased to Rs1,697.56 crore from Rs1,557.76 crore in the year-ago quarter. Photo: Pradeep Gaur/Mint
Indian Overseas Bank’s provisions during the quarter increased to Rs1,697.56 crore from Rs1,557.76 crore in the year-ago quarter. Photo: Pradeep Gaur/Mint

Mumbai: Indian Overseas Bank Ltd on Friday said its second-quarter net loss widened to Rs765.13 crore from Rs550.83 crore a year earlier as it set aside more money to cover bad loans and earned less interest income.

Net interest income, or the difference between interest earned on loans and that paid on deposits, fell 8.03% to Rs1,285.81 crore from Rs1,398.06 crore in the corresponding period last year.

Non-interest income, which includes core fee income, rose 25.24% to Rs969.63 crore in the three months ended 30 September from Rs774.21 crore a year earlier.

Gross non-performing assets (NPAs) made up 21.77% of total advances, up from 20.48% in the preceding quarter.

The bank’s provisions during the quarter increased to Rs1,697.56 crore from Rs1,557.76 crore in the year-ago quarter.

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