Public sector lender Oriental Bank of Commerce has posted a net loss at Rs 1,750 crore for July-September quarter despite sharp increase in other income and operating profit, as provisions for bad loans increased more than four-fold.
The bank had reported profit at Rs 153.3 crore year-ago quarter.
Net interest income during the quarter fell 4.9 percent to Rs 1,251.7 crore year-on-year, with loan growth of 4.8 percent at Rs 1.49 lakh crore.
Net interest income during the quarter fell 4.9 percent to Rs 1,251.7 crore year-on-year, with loan growth of 4.8 percent at Rs 1.49 lakh crore.
Loan book on sequential basis degrew by 0.3 percent.
Provisions and contingencies more than doubled to Rs 3,281.3 crore, compared with Rs 1,469.5 crore in previous quarter and rose more than four-fold compared with Rs 774.54 crore in corresponding year.
Gross non-performing assets as a percentage of gross advances were higher at 16.3 percent in Q2, from 14.83 percent in Q2FY18 but net NPAs were lower at 9.44 percent from 9.56 percent QoQ.
In absolute terms, gross NPAs during the quarter increased to Rs 26,432 crore against Rs 24,409 crore, but net NPAs fell to Rs 14,129 crore from Rs 14,809 crore quarter-on-quarter.
Other income (non-interest income) spiked 81.55 percent to Rs 1,059.24 crore and operating profit jumped 62.3 percent to Rs 1,551.4 crore compared with same quarter last fiscal.
Provisions and contingencies more than doubled to Rs 3,281.3 crore, compared with Rs 1,469.5 crore in previous quarter and rose more than four-fold compared with Rs 774.54 crore in corresponding year.
Gross non-performing assets as a percentage of gross advances were higher at 16.3 percent in Q2, from 14.83 percent in Q2FY18 but net NPAs were lower at 9.44 percent from 9.56 percent QoQ.
In absolute terms, gross NPAs during the quarter increased to Rs 26,432 crore against Rs 24,409 crore, but net NPAs fell to Rs 14,129 crore from Rs 14,809 crore quarter-on-quarter.
Other income (non-interest income) spiked 81.55 percent to Rs 1,059.24 crore and operating profit jumped 62.3 percent to Rs 1,551.4 crore compared with same quarter last fiscal.
Public sector Indian Overseas Bank (IOB) today reported widening of its net loss by nearly 60 per cent at Rs 1,222.50 crore for second quarter ended September.
The bank had a net loss of Rs 765.13 crore in the July- September quarter of 2016-17.
IOB said the loss is due to provisioning against the bad loans and not due to operations.
Net loss is due to increase in the provision by 77.3 per cent over June 2017 and 23.6 per cent over September 2016 and the quantum of additional provision made was Rs 985.04 crore during September 2017," it added.
Bank's gross non-performing assets (NPAs) jumped to 22.73 per cent of the gross advances by the end of September 2017 at Rs 34,708.59 crore, up from 21.77 per cent of the gross advances as on September 2016 that amounted Rs 34,724.12 crore.
However, net NPAs or bad loans were cut a tad at 13.86 per cent of the net loans by September 2017 (Rs 18,949.55 crore) against 14.30 per cent at end-September 2016 (Rs 20,765.31 crore).
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