Indian Overseas Bank posts Rs 939 crore loss for January-March quarter
Indian Overseas Bank said the Board of Directors in a meeting held today has approved to raise Rs 4,000 crore by issuing bonds.
Indian Overseas Bank on Friday posted a net loss of Rs 936.19 crore for the January-March quarter as provisions more than doubled due to spike in bad loans. The bank had a net profit of Rs 35.50 crore in the same quarter of 2014-15.
"Total income decreased to Rs 6,157.72 crore during three months ended March 2016, from Rs 6,704.03 crore in the corresponding period of preceding fiscal", it said in a regulatory filing.
Provisions for bad loans or non-performing assets (NPAs) and contingencies more than doubled to Rs 2,666.16 crore in January-March 2015-16, from Rs 986.23 crore in the year ago period, according to the filing.
Gross NPAs hit 17.40% of gross advances at Rs 30,048.63 crore as of March 2016, against 8.33 per (Rs 14,922.45 crore) in the preceding year. Net NPAs were 11.89% of net advances accounting for Rs 19,212.57 crore, against 5.68% or Rs 9,813.33 crore in the same period of 2014-15.
For full year 2015-16, Indian Overseas Bank's loss widened to Rs 2,897.33 crore, from Rs 454.33 crore in 2014-15. "Total income decreased to Rs 26,045.55 crore for the year ended March 2016 from Rs 26,076.93 crore in the year ago fiscal," it added.
In a separate filing to the exchanges, Indian Overseas Bank said the Board of Directors in a meeting held today has approved to raise Rs 4,000 crore by issuing bonds.
"Board of Directors of the Bank...Has considered and approved To raise Tier I/Tier II capital by issue of additional Tier I Perpetual/Tier II Basel III compliant bonds of Rs 2,500 crore and Rs 1,500 crore respectively with applicable green shoe option", it said.
The bank said it plans to raise the amount in one or more tranches, on private placement or to retail segment by way of public issue.
Also, the Board approved to issue equity shares not more than 78.82 crore shares by way of Follow-on Public Offer or Qualified Institutions Placement or issue of shares on preferential basis to LIC and other insurance companies/mutual funds/Government or shares to employees.
Stock of the public sector lender closed down by 1.25% to Rs 27.60 on BSE.