New Delhi: Public sector lender Indian Overseas Bank (IOB) witnessed widening of losses to Rs3,606.73 crore in the March quarter due to higher provisioning for mounting bad loans.

The bank had registered a net loss of Rs646.66 crore in the same quarter of previous fiscal. The loss was mainly due to provisioning requirements including higher provisions on account of RBI guidelines on revised framework on Resolution of Stressed Assets, IOB said in a statement.

“Pursuant to the revised framework, the bank has classified the specific restructured accounts in accordance with extant Income Recognition and Asset Classification (IRAC) norms and made a provision of Rs799.37 crore towards such accounts during the current quarter," it said.

Its total income rose to Rs5,814.42 crore during the fourth quarter of 2017-18 from Rs5,661.70 crore in same period a year-ago. At the same time, interest income increased to Rs4,828 crore as against Rs4,630 crore for the quarter ended 31 March 2017, registering a growth of 4.28%.

The bank’s provisions for bad loans and contingencies increased sharply to nearly four-fold to Rs6,774.55 crore during the March quarter from Rs1,789.74 crore a year earlier.

Asset quality worsened with gross non-performing assets (NPAs) at 25.28% of gross advances at the end of March from 22.39% in the year-ago period. Net NPAs were at 15.33% of net loans, up from 13.99% in the last quarter of 2016-17.

With regard to recovery, the bank said, it more than doubled to Rs5,726 crore as against the recovery of Rs2,729 crore during fourth quarter last fiscal.

The total slippage during the quarter stood at Rs9,868 crore mainly on account of the impact of RBI guidelines on revised framework on Resolution of Stressed Assets. Pursuant to the revised framework, the bank has classified the specific restructured accounts in accordance with extant IRAC norms.

For the full financial year 2017-18, the bank’s net loss nearly doubled to Rs6,299.49 crore from Rs3,416.74 crore in 2016-17.

However, it said, operating profit during the fiscal was Rs3,628.08 crore as against Rs3,650.20 crore in the previous fiscal. It total income remained lower at Rs21,661.65 crore as against Rs23,091.25 crore in the said period.

During the quarter ended March 2018, the bank has received an aggregate sum of Rs4,694 crore as capital infusion by the government of India for 2017-18 as part of the recapitalisation plan for public sector banks for which the bank has allotted 203,82,11,029 equity shares of Rs10 each for cash at issue price of Rs23.03 per equity share (including premium of Rs13.03 per equity share) .

Following infusion, government’s shareholding has increased to 89.74%. Shares of Indian Overseas Bank closed at Rs16.25, down 2.40% apiece on BSE.

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