Indian Overseas Bank reduced Q1 loss

State-owned Indian Overseas Bank (IOB) on Thursday reported narrowing its losses to Rs499.09 crore in the first quarter ended June as provisions for bad assets were reduced. There was a loss to the tune of Rs1,450.50 crore during the corresponding April-June quarter of fiscal ended March 2017.

Total income of the bank also fell to Rs5,174.50 crore during the three months to June this fiscal, as against Rs5,868.44 crore on account of reduction in interest rates, the bank said in a regulatory filing.

Read More

PSB merger: 7 banks miss August deadline to meet 25% public float norm

As discussions on the merger of some public-sector banks (PSBs) pick up pace, seven PSBs, especially United Bank of India, could miss the August deadline to meet the 25% public float norm. So the finance ministry may request capital markets regulator Securities and Exchange Board of India to extend the deadline for the PSBs, sources told FE. As of end-March, the government held more than 75% in seven PSBs — United Bank of India, Indian Bank, Bank of Maharashtra, Central Bank ofIndia, Punjab and Sind Bank, Indian Overseas Bank and UCO Bank.

Read More

Five banks have reported gross NPA ratios of over 15%

Bad loan crisis of state-owned banks surged 56.4 per cent in the 12-month period ending December 2016. It is set to rise further in the next two quarters with the small and medium sectors struggling to repay the loans after the NDA government’s demonetization move in November 8. It was reported by The Indian Express that the gross non-performing assets (NPA) surged to Rs 614,872cr.

Despite the Reserve Bank of India (RBI) announcing numerous restructuring schemes, the bad loans have risen up from Rs 261,843cr by 135 per cent in last two years. They now constitute 11 per cent of of the gross advances of Public Sector Unit (PSU) banks. In all, the total NPAs including both the public and private sector banks were Rs 697,409cr in December 2016. These figures were compiled by Care Ratings.

Read More

Punjab & Sindh bank merge with PNB and IOB merge with BOB

The government today said it is examining the possibility of further consolidation in the public sector banking space without waiting for their finances to improve.Merger of five associate banks and Bhartiya Mahila Bank with the country's largest lender SBI took place in April.

"Internally there was a thinking after the SBI amalgamation took place to wait for the rest till the health of the banks improve.

"We have now relooked at the whole system and there are some institutions within the public sector banks which can be consolidated even in the present circumstances. We are seriously examining them," Finance Minister Arun Jaitley told CNBC TV18.

Read More

Indian Overseas Bank(IOB) Q4 result, loss at Rs646.66 crore

Indian Overseas Bank (IOB) Wednesday reported a net loss of Rs646.66 crore in the March quarter, its seventh consecutive loss-making quarter. The figure, though is less than Rs963.19 crore loss in the same quarter a year ago.

Read More

Government appoints heads of 7 PSU banks; MDs of PNB, BoI shifted

In a major restructuring in the PSU banking space, the government today appointed heads of various public sector banks besides carrying out rejigs at PNB and Bank of India. PNB Managing Director Usha Ananthasubramanian has been shifted to relatively small Kolkata-based Allahabad Bank while head of Bank of India (BoI) Melwyn Rego will move to Syndicate Bank with immediate effect, according to an official statement.

Read More

Govt ask 10 public sector bank to cut staff benefits

The government has asked 10 public sector banks (PSB) to curtail employee benefits, including industry-standard pay hikes, if these want to receive any capital.The Centre wants these banks to sign a memorandum of understanding (MoU) with the employees’ unions to get a commitment on this. If the unions agree, benefits such as leave travel concessions and perks could go for a few years till the banks returned to health.

All three Kolkata-based banks — United Bank of India, UCO Bank and Allahabad Bank — have got this diktat. The letter has also gone to Indian Overseas Bank, Vijaya Bank, Bank of India, Central Bank of India, Andhra Bank, Bank of Maharashtra and Dena Bank, sources said.

Read More

Indian Overseas Bank Q3 result, Loss nearly halves to Rs554.44 crore

Indian Overseas Bank on Tuesday said it nearly halved its third-quarter loss from a year earlier, helped by higher other income and lower provisions against bad loans.

The public sector lender reported a loss of Rs554.44 crore for the quarter ended 31 December, compared with a loss of Rs1,425 crore in the same quarter a year earlier.The bank reported net interest income (NII)--or the difference between interest earned on loans and that spent on deposits—of Rs1,334.76 crore in the October-December period, marginally lower than Rs1,348 crore a year earlier.

Other income rose 34.6% on a year-on-year basis to Rs718 crore.Provisions during the third quarter dropped 26% on a year-on-year basis to Rs1,406 crore. In the July-September quarter, the bank had set aside provisions worth Rs1,697 crore.

Gross non-performing assets (NPAs) dropped marginally by 0.64% on a quarter-on-quarter basis to Rs34,502 crore in the December quarter. Net NPA were reported at Rs19,900.75 crore, down 4.16% sequentially.During the quarter, the bank recovered loans worth Rs2,446 crore, it said in a statement to the exchanges. In the first nine months of this financial year, the total recovery was at Rs5,981 crore.

Read More

Indian Overseas Bank Q2 result, Net loss widens to Rs765.13 crore

Indian Overseas Bank Ltd on Friday said its second-quarter net loss widened to Rs765.13 crore from Rs550.83 crore a year earlier as it set aside more money to cover bad loans and earned less interest income.

Net interest income, or the difference between interest earned on loans and that paid on deposits, fell 8.03% to Rs1,285.81 crore from Rs1,398.06 crore in the corresponding period last year.

Non-interest income, which includes core fee income, rose 25.24% to Rs969.63 crore in the three months ended 30 September from Rs774.21 crore a year earlier.

Gross non-performing assets (NPAs) made up 21.77% of total advances, up from 20.48% in the preceding quarter.

The bank’s provisions during the quarter increased to Rs1,697.56 crore from Rs1,557.76 crore in the year-ago quarter.

Read More

Indian Overseas Bank Q1 Result, Loss Rs 1,450.50 crore

Chennai-based Indian Overseas Bank (IOB) reported a Rs.1,450.50 crore loss for the quarter ended 30 June after a fifth of its advances turned bad. The bank reported a net profit of Rs.14.76 crore a year ago.

Gross non-performing assets (NPAs) as a ratio of gross advances were 20.48% at the end of June, higher than the 17.4% reported three months earlier. This is the highest gross NPA ratio reported by an Indian lender in 13 years. Dena Bank reported a gross NPA ratio of 21.82% in September 2002, which came down to 20.7% in December 2002. IDBI Bank reported a 29.9% gross NPA ratio in December 2003, according to Capitaline data.

IOB’s bad loans ratio has been deteriorating for a while now. On 5 October 2015, the banking regulator called for corrective action at the bank to check bad loans, improve internal controls and consolidate its business activities. The move came after the bank’s gross bad loans ratio widened to 11% of its gross advances at the end of the September 2015 quarter.

Read More

IOB posts Rs 936 cr loss in Q4, against Rs 35 cr profit a year ago

Indian Overseas Bank (IOB) has posted a net loss of Rs 936 crore for the quarter ended March 31, compared with a net profit of Rs 35.5 crore in the corresponding quarter a year before.

Total income has decreased to Rs 6,158 crore, from Rs 6,704 crore for the quarter ended March 2015.

Net loss for 2015-16 was Rs 2,898 crore, due to implementation of Assets Quality Review, which warranted increased provisions on identified non-performing assets (NPAs). This resulted in negative results for 2015-16.

Gross NPAs stood at Rs 30,049 crore, with gross NPA ratio of 17.4 per cent. Net NPA stood at Rs 19,213 crore, with net NPA ratio 11.9 per cent as on March 31.

In 2015-16, the Bank has raised capital to the tune of Rs 2,009 crore from the centre and Rs 202 crore from LIC.

Read More

History of Indian Overseas Bank (IOB)

Indian Overseas Bank (IOB) was founded on February 10th 1937, by Shri.M.Ct.M. Chidambaram Chettyar. MCt., as he was popularly known, was pioneer in many fields – Banking, Insurance and Industry. IOB was founded with the twin objectives of specializing in foreign exchange business and overseas banking. 

Read More

IOB Q3 net loss widens to Rs 1,425 crore on mounting bad loans

State-run Indian Overseas Bank(IOB) on Wednesday reported widening of net loss to Rs 1,425.06 crore for the December quarter on the back of higher provisioning against bad loans. 

The bank had posted a net loss of Rs 516.03 crore in the same quarter last fiscal. On account of increased provisions for domestic and overseas advances including provision made for asset quality review, as per the RBI direction, resulted in net loss, IOB said in a statement. 

Total income of the bank declined to Rs 6,445.78 crore during the quarter under review from Rs 6,647.45 crore in the same period a year ago. Gross NPAs, as a percentage of total advances, rose to 12.64 percent from 8.12 percent in the same quarter a year ago. 

Net NPAs went up to 8.32 percent compared with 5.52 percent in the year-ago period. Total provisions, excluding for income tax, increased to Rs 1,896.06 crore as against Rs 1,183.04 crore in the same period last fiscal. Net interest margin of the bank declined to 1.93 percent in the December quarter.

Read More