IDBI narrows Q2 losses to `3,459 cr

New Delhi, Nov. 8: Improving asset quality and better margins helped the crippled IDBI Bank to marginally narrow its net losses at Rs 3,459 crore in the September quarter, even though the the lender chose to make accelerated provisions for stressed assets. The LIC-controlled bank, which has been under the RBI’s prompt corrective action for more than a year, had reported a net loss of Rs 3,602 crore in the year-ago period.

The management attributed the losses to “accelerated provisions to the tune of Rs 3,425 crore, helping it take the provision coverage ratio to 91.25 from 68.72 from a year ago.”

Managing Director and Chief Executive Rakesh Sharma told reporters that total provisions during the quarter stood at Rs 4,453 crore.