IDBI Bank Q4 loss at Rs 1736 cr, provisions up 159%; NPA spikes

State-owned IDBI Bank Ltd reported a net loss of Rs.1,735.8 crore for the quarter ended 31 March after setting aside more money to cover the risk of loan default.

The bank had reported a net profit of Rs.546 crore a year ago, and a loss of Rs.2,184 crore in the October-December period.


The bank also had a tax writeback of Rs.1,119 crore but for which the loss would have been steeper.

Total provisions for the quarter rose to Rs.4,450 crore, up 19.5% from Rs.3,723 crore in the December quarter. Provisions during the same quarter last year were Rs.1,718 crore.


Provisions surged due to recognition of stressed loans as non-performing assets (NPAs) on a directive by the Reserve Bank of India after its asset quality review in December.


The gross NPA ratio for the January-March period jumped to 10.98% of total loans, higher than 8.94% in the third quarter. Gross NPAs as an absolute number rose 26.8% to Rs.24,875 crore from Rs.19,615.22 crore in December.


IDBI Bank’s net NPA ratio rose to 6.78% as of 31 March from 4.6% three months ago.

Net interest income, or the difference between interest earned on loans and that spent on deposits, rose by 6% from a year ago to Rs.6,089 crore in the fourth quarter. Non-interest income, or the money earned in fees and commissions, fell to Rs.1,346 crore from 1,970.3 crore last year, a dip of 32%.


IDBI Bank’s capital adequacy ratio, a measure of financial strength expressed as a ratio of capital to risk-weighed assets, under the Basel III regime was 11.67% in the quarter ended 31 March, lower than 11.76% a year ago. The ratio was 13% in December.


IDBI Bank conducted a preferential issue of shares in the last week of March and issued additional stock to Life Insurance Corporation of India, which now owns a 14.37% stake in the bank.


IDBI Bank shares fell 0.47% to Rs.64.10 on the BSE on a day the benchmark Sensex fell 0.39% to 25,301.90 points.
Share:

No comments:

Post a Comment


  Useful links for Bankers
   * Latest DA Updates
   * How to recover Bad loans/NPA Acs
   * Latest 12th BPS Updates
   * Atal Pension Yojana (APY)
   * Tips while taking charge as Manager
   * Software used by Banks in India
   * Finacle Menus, Shortcuts & Commands
   * Balance Inquiry Number of all Banks
   * PSU & Private Banks Quarterly result
   * Pradhan Mantri Awas Yojana (PMAY)

Contact Form

Name

Email *

Message *