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Business News/ Companies / Indian Overseas Bank Q2 net loss more than doubles to Rs550.83 crore
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Indian Overseas Bank Q2 net loss more than doubles to Rs550.83 crore

Provisions on account of bad loans scaled up 74% to `1,558 crore from a year ago

The Reserve Bank of India had pulled up Indian Overseas Bank earlier this month for ballooning bad loans and mandated it for prompt corrective action. Photo: Pradeep Gaur/MintPremium
The Reserve Bank of India had pulled up Indian Overseas Bank earlier this month for ballooning bad loans and mandated it for prompt corrective action. Photo: Pradeep Gaur/Mint

Chennai: Indian Overseas Bank on Saturday reported that net loss in the September quarter more than doubled to 550.83 crore from 245.51 crore in the year-ago period, as it had to set aside funds due to increased bad loans. The Reserve Bank of India had pulled up the bank earlier this month for ballooning bad loans and mandated it for prompt corrective action.

Provisions on account of bad loans scaled up 74% to 1,558 crore from a year ago. The growth of net interest income was flat at 1,398 crore compared with 1,344 crore a year ago.

Net non-performing assets in the quarter jumped to 7.41% compared with 5.17% in the year-ago period and 6.31% in the quarter ended 30 June.

“It is a demon...we are trying to rein in," said R. Koteeswaran, managing director of the bank in his earlier interaction with Mint. He could not be reached for comments on the financial results. Indian Overseas Bank has identified the weak assets and is taking corrective action, said the bank’s press release.

“The directions given by RBI are for improving the internal control of the bank and for the purpose of consolidation of the activities of the bank," said the bank in earlier announcement to the stock exchanges.

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Published: 31 Oct 2015, 09:04 PM IST
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