New Delhi. The public sector Indian Overseas Bank (IOB) suffered a major setback in the third quarter ended December 2019. The net loss of the bank increased to Rs 6,075.49 crore during this period. The bank's losses have increased due to higher provision for submerged debt. In the same quarter of the previous financial year, the bank had a net loss of Rs 346.02 crore. In a communication sent to the stock exchanges, the bank said that its total income declined to Rs 5,197.94 crore during the quarter from Rs 5,688.59 crore in the same quarter of the previous financial year.
The bank's provision for subordinated debt during the quarter Increased to Rs 6,663.94 crore, which was Rs 2,075.28 crore in the same quarter a year ago. The gross non-performing assets (NPAs) of the bank declined to 17.12 per cent of total loans during the quarter, compared to 23.76 per cent in the same quarter a year ago. Similarly, the bank's net NPA decreased from 13.56 percent to 5.81 percent. The bank's gross NPAs by value declined from Rs 35,786.57 crore to Rs 23,733.86 crore.
Similarly, the net NPA of the bank decreased from Rs 17,987.92 crore to Rs 7,087.09 crore. The bank clarified that there was a difference of Rs 358 crore in its assessment of gross NPA in 2018-19. The bank had declared a gross NPA of Rs 33,398 crore, while according to the Reserve Bank's estimate it was Rs 33,756 crore. Similarly, the difference of net NPA was also Rs 358 crore. The difference of provision was Rs. 2,208 crore. The bank said that the total loss was adjusted to Rs 5,999.90 crore in 2018-19. It was earlier reported to be worth Rs 3,737.90 crore.
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