NEW DELHI: IDBI Bank, majority owned by Life Insurance Corporation of India (LIC), Thursday narrowed net loss to ₹4,918 crore in the quarter ended March due to lower provision for bad loans.
The bank had reported a net loss of ₹5,663 crore in the same period last year.
"Our losses have come down in the quarter as provisions for non-performing loans (NPAs) reduced," its managing director and chief executive Rakesh Sharma told reporters.
Provisions for non-performing loans declined to ₹7,233 crore in the quarter from ₹10,773 crore in the same period last year.
For the full year, lender reported a net loss of ₹15,116 crore as against a net loss of ₹8,238 crore in FY18.
In January 2019, LIC completed acquisition of 51% controlling stake in the bank. The state-run life insurer infused ₹21,624 crore into the bank.
Net interest margin improved to 2.26% from 1.19%.
Gross non-performing assets ratio improved to 27.47% as against 27.95%, while net NPA was at 10.11 per cent as against 16.69%.
The bank, which under the Reserve Bank of India's (RBI) prompt corrective action (PCA), expects to bring down its net NPA ratio to below 9 per cent by June-end and below 6 per cent by September quarter.
"Our target is to come out of PCA and become profitable. We expect by September or maximum by December quarter we will be out of PCA," Sharma said.
Total provision stood at ₹6,314 crore as against ₹8,026 crore.
Provision Coverage Ratio improved to 82.88 per cent as on March 31, 2019 from 63.40 per cent as on March 31, 2018.
Fresh slippages reduced to ₹1,781 crore from ₹18,023 crore in the year-ago period.
Recovery in the quarter stood at ₹927 crore.
The bank has set a recovery target of ₹13,000 crore, including ₹2,000 crore from sale to asset reconstruction companies in the current financial year.
Sharma said the bank is looking to raise ₹1,500 crore through sale of non core assets- IDBI Federal Life Insurance and IDBI Mutual Fund.
The bank is also looking at raise ₹2,500-3,000 crore through Tier 1 bonds and ₹6,500 crore from markets.
Its CASA increased to ₹96,730 crore as on March 31, 2019 as against ₹92,102 crore as on March 31, 2018.
The lender's scrip ended at 2.57% to ₹37.95 apiece on BSE which ended at 39,831.97 Thursday.