Mumbai: IDBI Bank Ltd on Friday said its second quarter net loss narrowed to 3,459 crore on the back of higher net interest income and other income. The bank posted a net loss of 3,602.49 crore in the year-ago period.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 25.42% to 1,631.48 crore from 1,300.86 crore in the corresponding period last year.

Other income, which includes core fee income, gained 28.08% to 1,032.66 crore in the three months.

CASA deposit increased 15.49% to 1.04 trillion as on 30 September, against 90,071 crore for the same quarter last year.

Earlier this year, insurance behemoth Life Insurance Corporation of India (LIC) acquired 51% controlling stake in IDBI Bank, marking the entry of the more than 60-year old state-owned insurer into the banking space.

The bank said net interest margin (NIM) improved 53 basis points (bps) to 2.33% during the quarter.

Provisions and contingencies during the quarter fell 14% to 5,641.32 crore as against 6,580 crore in the year-ago quarter. In the Apr-Jun quarter, the bank had set aside 6,332.05 crore in provisions.

Gross non-performing assets (NPA), as a percentage of total advances, were at 29.43% in the September quarter as compared with 29.12% in the June quarter and 31.78% in the year-ago period.

Post provision, the net NPA ratio was at 5.97% against 8.02% in the Apr-Jun quarter and 17.30% a year ago.

On Friday, shares of the bank lost 2.38% to close at 32.80 apiece, while the Sensex lost 0.81% to close at 40,323.61 points.

Close