Credit rating agency, CRISIL has reaffirmed its ‘AA/Stable’ rating on Indian Overseas Bank’s Lower Tier II Bonds. The rating on the bank’s certificates of deposit programme and Fixed Deposit Programme have also been reaffirmed at ‘A1+’ and ‘FAAA/Stable’ respectively. Besides, the bank’s Tier I Perpetual Bonds and Upper Tier II Bonds (under Basel II) have been revised to ‘AA-/Stable’ from ‘AA/Negative’.
The bank has reported a net loss of Rs 245.51 crore for second quarter ended September 30, 2013 as compared to a net profit of Rs 132.55 crore for the same quarter in the previous year. Total income of the bank has increased by 7.35% at Rs 6440.77 crore for quarter under review as compared to Rs 5999.75 crore for the quarter ended September 30, 2012.
Gross non-performing assets (NPAs) increased to 7.35% in the July-September quarter as against 4.65% in the same quarter previous year, while net NPAs stood to 5.17%.