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Bad Loans Rise at Three Mid-Sized State Lenders

Bad Loans Rise at Three Mid-Sized State Lenders

Mumbai: Indian Overseas Bank, a state-run lender, reported its second straight quarterly loss on Thursday as bad loans surged, sending its shares down as much as 10 percent.

UCO Bank and Allahabad Bank, two other state-run lenders that reported quarterly results on Thursday, also saw their bad loan ratios widening, leading to a fall in their share prices.

Chennai-based Indian Overseas Bank reported a net loss of Rs 516 crore for its fiscal third quarter to December 31. Gross non-performing loans as a percentage of advances rose to 8.12 per cent from 7.35 per cent a quarter earlier. Provisions rose nearly a third from the September quarter.

Kolkata-based UCO Bank said net profit fell 3.5 per cent to Rs 304 crore for the three months to December. Its gross bad loans ratio widened to 6.5 per cent from 5.2 per cent in the September quarter.

Allahabad Bank saw its net profit almost halving to Rs 164 crore in the December quarter. Gross bad loans were 5.46 per cent compared with 5.36 per cent in the previous quarter.

Bigger state-run banks such as Bank of Baroda, Punjab National Bank and Union Bank have also seen their bad loans rising in the December quarter.

Indian Overseas Bank slumped 9.8 per cent, UCO Bank closed 5.6 per cent lower, while Allahabad Bank fell 2.9 per cent.

Copyright: Thomson Reuters 2015