IDBI Bank has posted a loss of Rs 2,184 crore in quarter ended December 2015 due to higher provisions and lower other income. It had reported profit of Rs 103 crore in same quarter last fiscal.
Net interest income, the difference between interest earned and interest expended, grew by 8.7 percent year-on-year to Rs 1,555 crore in Q3 while other income (non-interest income) declined 25.6 percent to Rs 578.3 crore in same period.
Operating profit was up only 0.4 percent to Rs 1,117.74 crore on yearly basis. Provisions for bad loans shot up 188.7 percent sequentially and 289 percent year-on-year to Rs 3,723 crore in quarter ended December 2015 due to asset quality review.
The Reserve Bank of India advised bank to revise asset classifications / provisions in respect of certain advance accounts over two quarters (Q3 and Q4FY16).
Asset quality deteriorated during the quarter with gross non-performing assets (NPA) rising 202 basis points sequentially to 8.94 percent and net NPA climbing 144 bps to 4.6 percent in Q3.
In absolute terms, gross NPA jumped 33 percent quarter-on-quarter to Rs 19,615 crore and net NPA shot up 48 percent to Rs 9,613 crore in quarter ended December 2015, impacted by fresh slippages that increased significantly to Rs 5,839 crore from Rs 1,373 crore on sequential basis.
The bank expects more bad loans in Q4. The stock closed at Rs 52.10, up 0.19 percent after hitting a 52-week low of Rs 47.40 on the BSE.
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