IDBI Bank reports 4th straight quarterly loss

IDBI Bank on Tuesday reported its fourth straight quarterly loss as bad loans continued to mount and provisions soared.

However , the loss was restricted for the quarter due to tax write back.

During the September quarter, the bank reported a loss of Rs197.84 crore against a profit of Rs55.52 crore a year ago. The bank got a tax write-back of Rs260.53 crore against Rs135.03 crore paid last year same quarter.

Asset quality of the bank worsened further. As a percentage of total loans, gross non-performing assets (NPA) rose to 24.98% as compared to 24.11% in the previous quarter and 13.05% in the year-ago quarter.

Gross NPAs stood at Rs51,367.69 crore, up 70.46% from Rs30,133.96 crore a year ago and Rs50,173.20 crore a quarter ago.

Provisions and contingencies jumped 141% to Rs3,256.60 crore from Rs1,349.09 crore a year ago. On a quarter-on-quarter basis, it rose 57% from Rs2,069.70 crore.

Net interest income (NII) or the core income a bank earns by giving loans rose marginally by 3.7% to Rs1,657.45 crore versus Rs1,598.61 crore last year.

Other income increased 63.6% to Rs2,293.28 crore from Rs1,401.58 crore in the same period last year.

Advances for the quarter fell 16.05% to Rs1.84 trillion from a year ago.

Deposits declined by 19.24% to Rs2.42 trillion.