IDBI Bank, BOB report massive 4th quarter losses
MUMBAI: State-owned banks IDBI Bank and Bank of Baroda on Friday reported huge losses at the end of the March quarter after setting aside funds to cover rising bad loans.
IDBI Bank reported a net loss of ₹5,662.76 crore in the three months ended March 31, against ₹3,199.77 crore during the same quarter in the previous year.
Provisions more than doubled to ₹10,773.30 crore from ₹3,637.49 crore at the end of the December quarter. The bank’s gross nonperforming assets (NPAS) ratio rose to 27.95%, compared to 24.72% at the end of the December quarter.
In a press conference after announcing earnings, IDBI Bank managing director and chief executive officer MK Jain said the bank has identified ₹21,397 crore of bad loans to be put for sale, which includes 30 large corporate accounts. He also said that the bank has added fresh bad loans worth ₹12,823 crore in the fourth quarter.
“Most of the legacy issues on asset quality have been recognized. We hope to turn around by the end of the financial year, on the back of IBC resolutions,” Jain said.
The bank’s net i nterest income—the difference between interest earned and paid— declined by 43.9% to ₹915.47 crore in the March quarter, as compared to ₹1,633.3 crore in the cor- responding period a year earlier.
Separately, Bank of Baroda on Friday reported a fourth quarter net loss of ₹3,102 crore on the back of lower other income and higher provisioning.
The bank posted a net loss of ₹3,102.34 crore for the three months ended March 31, compared to a profit of ₹154.72 crore in the year-ago period.
Net interest income in the March quarter rose 11.74% to ₹4,002.26 crore from ₹3,581.86 crore in the corresponding period last year.
Other income, which includes core fee income, fell 14.23% to ₹1,695.90 crore in the three months from ₹1,977.28 crore a year ago.
Provisions during the quarter increased two-and-a-half fold to ₹6,672.38 crore as against ₹2,622.97 crore in the year-ago quarter. In the October-december quarter, the bank had set aside ₹3,426.51 crore in provisions.