New Delhi: State-owned Indian Overseas Bank on Tuesday cut its net profit for 2020-21 to Rs 646 crore after reporting differences in asset classification and provision of bad loans. While the bank recorded gross non-performing assets (GNPA) at Rs 16,323 crore in FY2011, the Reserve Bank estimated Rs 17,023 crore, leaving a divergence of Rs 700 crore in gross bad loans.

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

The total deviation in provision was Rs 185 crore, IOB said in a regulatory filing.

Thus, as per RBI’s Risk Assessment Report (RAR) on divergence in asset classification and provisioning, the net profit for FY 2011 was reduced to Rs 646 crore from Rs 831 crore earlier.

Shares of Indian Overseas Bank closed at Rs 21, down 0.24 per cent on the BSE.