Mumbai: IDBI Bank Ltd on Tuesday reported a loss for the seventh consecutive quarter as the lender continued to set aside higher provisions for its bad loans. The bank would have reported higher loss if there was no tax write back. Net loss for the quarter stood at Rs 2,409.89 crore against Rs 853.01 crore in the same quarter last year. It reported a tax write back of Rs 1,745.09 crore against Rs 3,39.61 crore a year ago.
Provisions and contingencies surged 157.33% to Rs 5,239.07 crore in the quarter from Rs 2,035.96 crore a year ago. On a quarter-on-quarter basis, they declined 50.31% from Rs 10,544.34 crore.
Gross non-performing assets (NPAs) rose 15.21% to Rs 57,806.84 crore at the end of the June quarter from Rs 50,173.20 crore in the same quarter last year.
As a percentage of total loans, gross NPAs stood at 30.78% as compared to 27.95% in the previous quarter and 24.11% in the year-ago quarter. Net NPAs were at 18.76% in the June quarter compared to 16.69% in the previous quarter and 15.8% in the same quarter last year.
Net interest income (NII), or the core income a bank earns by giving loans, was up 16.89% to Rs 1,638.62 crore versus Rs 1,401.90 crore last year. Other income was at Rs 642.95 crore, down 6.3% from Rs 686.26 crore a year ago.
Recently, IDBI Bank has received government approval for an acquisition of 51% stake by Life Insurance Corp. of India. LIC’s IDBI Bank acquisition would be through preferential issue/open offer of equity, subject to regulatory approval and compliance with laws. Post the transaction, IDBI Bank would become a subsidiary of the insurer. LIC, at present, holds 7.98% stake in the bank.
At 2.50pm, IDBI Bank was trading at Rs 59.30 on BSE, down 2% from its previous close while India’s benchmark Sensex Index rose 0.67% to 37897.84 points.