In line with expectations of falling profitability among PSU banks, Indian Overseas Bank has reported a sharp drop in net profits to Rs 125.80 crores, as against Rs 588.7 crores in the previous quarter ending March 31, 2013.
The asset quality has deteriorated further with gross non performing assets at 4.45 for Q1 2014 as against 4.01 in the previous quarter ending March 31, 2013. The net NPAS have also gone upto 2.81 per cent in Q1 2014.
Total income has increased to Rs 6197 crores for the quarter under review. The stock price of Indian Overseas Bank dropped sharply by 3.39 per cent following the results and was last trading at Rs 45.70.
IOB like most other public sector and private sector banks have seen a sharp increase in non performing assets, as slowdown takes its toll on economic growth.