Indian Overseas Bank NPA at 20%: Will govt burn a hole in taxpayers' pockets again?
Is Chenna-based public sector lender Indian Overseas Bank (IOB) staring at a crisis situation? Let’s look at the numbers. At the end of the June quarter, the total gross non-performing assets (GNPAs) of the lender have touched a record high of 20.48 percent of its total loan book (of Rs 1,65,556 crore). In other words, one out every five rupees lent by the bank has now gone bad. According to a Firstpost analysis, that’s the highest level of bad loans in at least 14 years. Total losses of the bank, in the last one year (four quarters put together) stood at Rs 4,467 crore. The numbers indeed say it is.
To be sure, at present, there is no immediate threat to the depositors and investors as the government has recently infused some money into the bank. But the situation can turn serious going ahead if the lender fails to generate money on its own or from the government.
Read More>>Click Here
No comments:
Post a Comment