Latest News | IOB Lowers Yearly Profit to Rs 646 Cr on Asset Classification Divergence

New Delhi, Nov 16 (PTI) State-owned Indian Overseas Bank (IOB) on Tuesday revised downwards its net profit to Rs 646 crore for 2020-21 after reporting a divergence in asset classification and provisioning for bad loans.

While the bank reported Gross Non-Performing Assets (GNPAs) at Rs 16,323 crore in FY21, the Reserve Bank assessed it at Rs 17,023 crore, leading to a divergence of Rs 700 crore in gross bad loans.

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Likewise, the net NPA divergence also came in at Rs 700 crore.

The overall divergence in the provisioning stood at Rs 185 crore, IOB said in a regulatory filing.

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Thus, net profit for FY21 was revised downwards to Rs 646 crore from the earlier reported Rs 831 crore, as per RBI's Risk Assessment Report (RAR) on divergence in asset classification and provisioning.

Stock of Indian Overseas Bank closed 0.24 per cent down at Rs 21 apiece on BSE.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)