IDBI Bank loss widens to ₹3,602 cr in Q2
State-owned IDBI Bank on Wednesday reported widening of net loss to ₹3,602.49 crore during the September quarter of 2018-19, as bad loans jumped substantially.
It had posted a net loss of ₹197.84 crore in the corresponding quarter of the previous financial year.
It was IDBI’s eighth straight quarterly loss and the the bank’s longest streak of quarterly losses since at least 2005.
Total income of the bank was also down at ₹6,162.14 crore in the reported quarter as against ₹8,302.42 crore a year ago, IDBI Bank said in a regulatory filing.
The bank’s gross non-performing assets (NPAs) hit 31.78% (₹60,875.49 crore) of the gross advances by September 30, 2018 as against 24.98% (₹51,367.69 crore) in the year-ago period.
Net NPAs stood at 17.30% (₹27,294.58 crore) of the net advances, up from 16.06% (₹29,488.83 crore) in the corre- sponding period last year.
Sequentially also, the bad loan proportion of the bank worsened.
Thus, the provisioning for NPAs for the quarter was raised to ₹5,481.64 crore from ₹2,842.15 crore during the July-September quarter of 2017-18.
The overall provisioning and contingencies stood at ₹6,579.83 crore for the quarter, up from ₹3,261.42 crore in the year-ago period.
Last week, shareholders of the bank voted in favour of issuing new shares to state-run Life Insurance Corp as part of a planned takeover aimed at helping IDBI get capital to set aside for bad loans and grow its lending.
Shares of IDBI Bank were trading up by 1% at ₹60.50 per scrip on BSE.
NEW DELHI: