Indian Overseas Bank Q3

IOB has reported a 35% drop in net profit at 75 Cr for the quarter ended December 31, 2013, against 116 Cr posted for the comparable previous year quarter. M Narendra, CMD of the bank, attributed the fall in net profit to higher provisioning towards bad debts and restructured accounts. The bank reported a slippage of 1,615 Cr during the quarter. According to Narendra, the bank provided 690 Cr for bad debts this quarter against 486 Cr in the previous quarter, and hence the coverage ratio was close to 57%. Total income went up by 6% to 6,190 Cr (5,846 Cr). “The year so far has been very challenging. And we have been focussing on recovery, and have recovered 206 Cr during the period,” he said. The bank’s net interest margin went down to 2.26% for the period, from 2.39% in the previous year period. Gross non-performing assets rose to 9,168 Cr (5.27%) during the quarter from 6,515 Cr (4.13%) last year. Net NPAs increased to 5,481 Cr (3.24%) for the quarter under consideration from 3,595 Cr (2.33%).