Indian Overseas Bank (IOB) posted a net loss of Rs. 919.44 crore for the first quarter ended June 30, against a net loss of Rs. 499.09 crore in the year-earlier period, mainly as a result of a 60.8% increase in provisioning.

Total income for the quarter rose 2.94% year-on-year to Rs. 5,326.71 crore, from Rs. 5,174.50 crore.

Interest income increased to Rs. 4,248.60 crore, from Rs. 4,187.20 crore, the public sector lender said in a statement on Friday.

Gross NPAs rise

Gross NPAs (non-performing assets) rose to Rs. 38,146 crore from Rs. 35,453 crore, while net NPAs shrank to Rs. 19,642 crore from Rs. 20,166 crore. The bank’s provision coverage ratio was 61.10%.

Provisions and contingencies for the quarter ended June were Rs. 2,051.47 crore against Rs. 1,275.69 crore a year earlier, marking an increase of Rs. 775.78 crore.

During the period under review, the total recovery of the bank was Rs. 3,389 crore against Rs. 2,784 crore in the year-earlier period, while the total slippage for the quarter ended June 2018 stood at Rs. 1,994 crore.

The recovery achieved was substantially higher than slippages during the quarter mainly due to resolution in NCLT accounts coupled with focused efforts on recovery, the Chennai-based bank said in the statement.

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