State-owned, Indian Oil Corporation on Monday posted a 29.7 per cent year-on-year drop in its quarterly net profit, at 3,905 crore rupees, because of rise in losses arising from selling fuel at government controlled rates. The IOC had to absorb 4,845 crore rupees of loss on fuel sales during the 2010-11 fiscal, after accounting for cash subsidy from the government and assistance from upstream firms ONGC and GAIL. IOC also had to incur 1,500 crore rupees in interest on borrowings it had to resort to because the government did not release cash subsidy in time.