IDBI Bank reports 4th straight quarterly loss, gross NPAs rise to 25%
Mumbai: IDBI Bank Ltd on Tuesday reported its fourth straight quarterly loss as bad loans continued to mount and provisions soared.
However , the loss was restricted for the quarter due to tax writeback.
During the September quarter, the bank reported a loss of Rs197.84 crore against a profit of Rs55.52 crore a year ago. The bank got a tax write-back of Rs260.53 crore against Rs135.03 crore paid last year same quarter.
Asset quality of the bank worsened further. As a percentage of total loans, gross non-performing assets (NPA) rose to 24.98% as compared to 24.11% in the previous quarter and 13.05% in the year-ago quarter.
Gross NPAs stood at Rs51,367.69 crore, up 70.46% from Rs30,133.96 crore a year ago and Rs50,173.20 crore a quarter ago.
Provisions and contingencies jumped 141% to Rs3,256.60 crore from Rs1,349.09 crore a year ago. On a quarter-on-quarter basis, it rose 57% from Rs2,069.70 crore.
Net interest income (NII) or the core income a bank earns by giving loans rose marginally by 3.7% to Rs1,657.45 crore versus Rs1,598.61 crore last year.
Other income increased 63.6% to Rs2,293.28 crore from Rs1,401.58 crore in the same period last year.
Advances for the quarter fell 16.05% to Rs1.84 trillion from a year ago.
Deposits declined by 19.24% to Rs2.42 trillion.
IDBI Bank shares closed 3.91% lower at Rs62.70 on the Bombay Stock Exchange (BSE) while India’s benchmark Sensex fell 0.16% to 33,213.13 points.