IDBI Bank posts loss for 5th straight quarter on higher bad loans, provisions
The IDBI Bank reported a loss of Rs1,524.31 crore for the December quarter, down from Rs2,255 crore from a year ago
Mumbai: IDBI Bank Ltd on Wednesday reported a loss for the fifth consecutive quarter as bad loans continued to mount and provisions soared.
For the December quarter, the bank reported a loss of Rs1,524.31 crore, down from Rs2,255 crore from a year ago. A tax write-back of Rs1,234.82 crore, against Rs768.38 crore a year ago, helped limit the loss. Provisions and contingencies rose 30.37% to Rs4,179.12 crore from Rs3,205.56 crore a year ago. On a quarter-on-quarter basis, the increase was 28.33% from Rs3,256.60 crore. Gross non-performing assets (NPAs) rose 43.63% to Rs50,621.75 crore at the end of December from Rs35,245.33 crore a year ago.
Gross NPAs made up 24.72% of the bank’s loan book, compared to 24.98% in the previous quarter and 15.16% a year ago. Net NPAs were 16.02% of advances, as against 16.06% in the previous quarter and 9.61% a year ago.
Net interest income, which a bank earns from loans, more than doubled to Rs1,665.51 crore from Rs813.25 crore a year ago. Non-interest income rose 44.25% to Rs848.61 crore from Rs588.28 crore.