The lender had posted a net loss of ₹4,185.48 crore during the corresponding October-December period of the previous fiscal year.
Total income during the three months to December 2019, however, grew to ₹6,215.60 crore from ₹6,190.94 crore in the year-ago period, IDBI Bank said in a regulatory filing.
The LIC-promoted bank continued to witness high proportion of bad loans, with gross non-performing assets (NPAs) at 28.72% of the gross advances at end of December 2019, little lower than 29.67% in the corresponding period of the previous fiscal.
In value-terms, gross bad loans stood at ₹49,502.68 crore, lower than ₹55,360.38 crore earlier.
Net NPA ratio, however, came down substantially to 5.25% ( ₹6,805.49 crore) from 14.01% ( ₹21,360.49 crore).
Provisions for bad loans were cut significantly to ₹440 crore from ₹5,074.80 crore in the December quarter of 2018-19.
Likewise, the overall provisions and contingencies too reduced to ₹521.95 crore from ₹6,530.73 crore.
On a consolidated basis, the bank reported net loss of ₹5,728.70 crore for the reported quarter as against a net loss of ₹4,165.21 crore a year earlier.
Income came in at ₹6,267.23 crore during the quarter, slightly up from ₹6,243.93 crore.
The bank said its authorised capital increased to ₹25,000 crore from ₹15,000 crore on October 22, 2019, when it allotted over 134.85 crore shares to LIC at a price of ₹35.17 per share and 129.57 crore shares to the government at the same price through preferential allotment the following day.
"Post allotment (of shares), the shareholding of LIC stands at 51% and that of GoI (central government) stands at 47.11%," it said.
Further, the bank said in respect of RBI referred NCLT accounts (list 1 and 2), it is holding a total provision of ₹22,644.40 crore (100% of total outstanding including technically write-off cases) as on December 31, 2019.
The bank's provision coverage ratio (including technical write-offs) was 92.41% as on December 31, 2019.
During the quarter, the bank made additional provisions of ₹1,678.65 crore over and above the norms in respect of certain borrower accounts in view of the inherent risk and uncertainty of recovery in these accounts, it added.
Further, IDBI Bank said it has restructured 593 accounts amounting to ₹30.91 crore up to December 31, 2019 and treated them as standard assets.
It also said it has exercised the lower tax option permitted under the Taxation Laws (Amendment) Act, 2019.
Accordingly, the bank has re-measured its net DTA (Deferred Tax Asset) recognised till September 30, 2019 based on the tax rate prescribed in the said section, resulting in a one-time reversal of ₹6,273.04 crore ( ₹5,502.77 crore considering DTA as on March 31, 2019), it said.
"For the current quarter the net DTA reversal works out to ₹245.89 crore resulting into total reversal of DTA of ₹6,518.93 crore," IDBI Bank said.
Stock of the bank closed at ₹37 on BSE, up 2.07% from its previous close.