IDBI Bank Monday posted widening of loss by nearly threefold to Rs 4,185.48 crore for the third quarter ended December 2018 as bad loans surged.
The bank had reported a net loss of Rs 1,524.31 crore in the corresponding quarter of the previous fiscal.
Total income decreased to Rs 6,190.94 crore for the quarter, compared with Rs 7,125.20 crore in the corresponding quarter a year ago, IDBI Bank said in a statement.
The bank's gross non-performing assets (NPAs) shot up to 29.67 per cent of gross advances during the quarter, against 24.72 per cent in the year-ago period.
However, net NPAs declined to 14.01 per cent of the total advances, from 16.02 per cent in the December 2017 quarter.
ALSO READ: Moody's upgrades IDBI's foreign currency rating; outlook labeled positive
As a result, the bank's provision for bad loan increased to Rs 5,074.80 crore, compared with Rs 3,649.82 crore a year ago.
However, slippages were Rs 2,211 crore which were lowest in the past seven quarters, Recovery from NPAs improved to Rs 3,440 crore during the quarter, compared with Rs 537 crore in the same period a year ago.
The ownership of the bank has changed from the Government of India to LIC.
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The statement further said Life Insurance Corporation of India (LIC) completed acquisition of 51 per cent controlling stake in IDBI Bank on January 21 and the bank received total capital of Rs 21,624 crore from the insurer.
On the backdrop of capital infusion from LIC, it said that the bank has achieved regulatory capital requirement as on December 31, 2018, and its common equity tier-1 (CET-1) capital improved to 9.32 per cent as on December 31, 2018, against 6.62 per cent a year ago.
The bank had reported a net loss of Rs 1,524.31 crore in the corresponding quarter of the previous fiscal.
Total income decreased to Rs 6,190.94 crore for the quarter, compared with Rs 7,125.20 crore in the corresponding quarter a year ago, IDBI Bank said in a statement.
The bank's gross non-performing assets (NPAs) shot up to 29.67 per cent of gross advances during the quarter, against 24.72 per cent in the year-ago period.
However, net NPAs declined to 14.01 per cent of the total advances, from 16.02 per cent in the December 2017 quarter.
ALSO READ: Moody's upgrades IDBI's foreign currency rating; outlook labeled positive
As a result, the bank's provision for bad loan increased to Rs 5,074.80 crore, compared with Rs 3,649.82 crore a year ago.
However, slippages were Rs 2,211 crore which were lowest in the past seven quarters, Recovery from NPAs improved to Rs 3,440 crore during the quarter, compared with Rs 537 crore in the same period a year ago.
The ownership of the bank has changed from the Government of India to LIC.
ALSO READ: IDBI Bank shares tumble over 3% after 51% stake acquisition by LIC
The statement further said Life Insurance Corporation of India (LIC) completed acquisition of 51 per cent controlling stake in IDBI Bank on January 21 and the bank received total capital of Rs 21,624 crore from the insurer.
On the backdrop of capital infusion from LIC, it said that the bank has achieved regulatory capital requirement as on December 31, 2018, and its common equity tier-1 (CET-1) capital improved to 9.32 per cent as on December 31, 2018, against 6.62 per cent a year ago.
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