Despite deteriorating asset quality and increasing bad loans, Indian Overseas on Thursday reported that it has narrowed its first-quarter loss to Rs 499 crore from a loss of Rs 1,450.50 crore past year on the back of lower loan loss provisions. Asset quality for the bank during the quarter witnessed a marginal improvement.
The bank improved on its asset front with gross non- performing assets falling to 13.05 per cent of the gross advances as on June 30, 2017 from 13.38 per cent at the end- June 2016.
Total income of the bank also fell to Rs 5,174.50 crore during the three months to June this fiscal, as against Rs 5,868.44 crore on account of reduction in interest rates, the bank said in a regulatory filing.
In a statement issued here, the bank said it had earned a net profit of Rs 140 crore for the period ended June 30, 2017, up from Rs 124 crore earned during the corresponding period of the previous year.
On NSE, it jumped 3.86 per cent to close at Rs 158.45.
Among other key verticals, the net interest margin (NII) - a key factor to measure profitability - stood at 1.65 per cent for the quarter ended June 2017 as against 1.87 per cent end-June 2016. The bank will announces its earnings on August 10.
SBI shares were trading down 4.6 per cent or Rs 13.65 at Rs 282.90 on the BSE at about 1.30 pm.