Mumbai: IDBI Bank Ltd on Wednesday reported eighth consecutive quarter loss as bad loans continued to mount and provisions soared. The bank would have reported higher loss if there was no tax write back.
The bank reported a loss of Rs3,602.49 crore against Rs197.84 crore a year ago. Tax writeback for the quarter stood at Rs2,127.33 crore against Rs260.53 crore last year same quarter.
Provisions and contingencies surged 101.75% to Rs6,579.83 crore in the quarter from Rs3,261.42 crore a year ago. On a quarter-on-quarter basis, they rose 25.67% from Rs5,235.96 crore. Other income fell 64.92% to Rs806.25 crore.
Net interest income (NII), or the core income a bank earns by giving loans, declined 21.5% to Rs1,300.86 crore versus Rs1,657.45 crore last year.
Asset quality deteriorated with gross non-performing assets (NPAs) rising to 31.78% of the gross advances as of September-end 2018, as against 24.98% a year ago. Net NPAs increased to 17.3% of net advances at the end of the second quarter, from 16.06% in the year-ago period
Gross non-performing assets (NPAs) rose 18.51% to Rs6,0875.49 crore at the end of the September quarter from Rs5,1367.69 crore in the same quarter last year.
Advances for the quarter fell 14% to Rs1.58 trillion while deposits declined 2.21% to Rs2.36 trillion.
IDBI Bank shares was trading at Rs59.85 on BSE, down 0.08% from its previous close while India’s benchmark Sensex Index fell 0.1% to 35,108.95 points.