State-owned IDBI Bank, which is to be soon taken over by insurance giant Life Insurance Corporation of India (LIC), has reported a net loss of Rs2,410 crore for fiscal first quarter (April-June 2018-19) against Rs853 crore in the year-ago quarter.
IDBI bank attributes the losses to bad loan provisions. The net loss in the April-June 2018-19 quarter, however, is lower the preceding quarter's net loss of Rs5,663 crore.
The state-owned bank saw its gross non-performing assets (GNPAs) rise to 30.78 per cent of gross advances as of end-June 2018 from 27.95 per cent at end-March 2018.
LIC, India's largest life insurer, is expected to invest around Rs13,000 crore in IDBI Bank, raising its stake in the bank from 7.98 per cent to 51 per cent, under RBI's prompt corrective action framework,
IDBI Bank’s net interest income was up 17 per cent year-on-year at Rs1,639 crore (Rs1,402 crore in the year-ago quarter). Other income was down 6 per cent at Rs643 crore (Rs683 crore).
Operating profit was rose 28 per cent yoy to Rs1,081 crore (Rs843 crore). Loan loss provisions soared to Rs4,603 crore (Rs1,873 crore).
During the quarter, GNPAs increased by Rs 2,219 crore to Rs57,807 crore. Deposits declined by Rs8,036 crore to Rs2,39,896 crore while advances declined by Rs11,941 crore to Rs1,59,799 crore.