NEW DELHI : Indian Overseas Bank (IOB) Thursday reported narrowing of net loss to 1,985.16 crore for the March quarter of the previous fiscal due to reduction in bad loans and provisioning.

The public sector lender reported a loss of 3,606.73 crore during January-March, 2017-18.

During December quarter of the last fiscal, the bank's loss stood at 346.02 crore.

"Net loss is only due to additional provision in the existing NPA to the tune of 1,400 crore and one fraud account provision to the extent of 700 crore," the bank said.

Total income during the quarter was down at 5,473.92 crore from 5,814.42 crore in the year-ago period, the bank said in a regulatory filing.

For 2018-19, the net loss was down at 3,737.88 crore from 6,299.49 crore during 2017-18. Income was slightly higher at 21,837.58 crore from 21,661.65 crore a year ago.

Gross non-performing assets (NPAs) of the bank came down to 21.97 per cent ( 33,398.12 crore) of the gross advances by end of March 2019 as against 25.58 per cent ( 38,180.15 crore) at March-end 2018.

Net NPAs were 10.81 per cent ( 14,368.30 crore) as against 15.33 per cent ( 20,399.66 crore).

Thus, provisioning and contingencies for the March quarter 2019 were reduced to 4,501.92 crore from 6,774.55 crore a year ago.

The bank's board at its meeting held today has considered and approved a capital plan for 2019-20 for issue of equity shares to a maximum extent of 300 crore shares with appropriate premium to public, it said.

The money is intended to be raised by way of follow on public offer, rights issue with or without participation from government issue of equity shares to Qualified Institutional Buyers, among others, it added.

The bank also plans to raise up to 1,500 crore by issuance of BASEL III-compliant Tier II bonds in one or more tranches on private placement basis to retail segment by way of public issue either domestically or overseas, it said.

The Chennai-based lender said recovery in NPA accounts for 2018-19 is 14,669 crore as compared to 15,496 crore a year ago. There were fresh slippages of 6,071 crore.

Stock of the bank closed 0.68 per cent up at 13.24 on BSE.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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