IDBI Bank Q3 loss widens to Rs 5,763 crore
12 February 2020
IDBI Bank on Tuesday reported that its net loss stood at Rs5,763 crore as at the quarter ended 31 December 2019, widening on sequential as well as year-on-year basis despite sharp fall in provisions.
IDBI Bank, now part of state-run insurance major, Life Insurance Corporation of India (LIC) has reported fresh loan slippages of Rs2,113 crore in the quarter ended 31 December 2019, up from Rs2,059 crore in the previous quarter.
The lender posted loss of Rs4,185.5 crore in similar quarter of the previous financial year and a loss of Rs3,458.84 crore in quarter ended 30 September 2019.
IDBI Bank said profitability was also impacted by a higher provisioning for tax.
"During the quarter, bank exercised the option of lower tax rate taking one time hit of Rs 6,273 crore. Excluding the impact of this one time additional hit, bank would have reported net profit of Rs 418 crore against the net loss of Rs 5,763 crore being reported for the current quarter," the lender said in its BSE filing.
Net interest income during the quarter grew 13 per cent to Rs1,532.36 crore compared with the year-ago period, but advances declined by 15 per cent YoY to Rs1,30,000 crore in Q3FY20. Deposits fell 5 per cent YoY to Rs2,18,000 crore in the same period.
The bank said net interest margin improved by 39 bps to 2.27 per cent for Q3FY20, compared to 1.88 per cent for same period last year.
Asset quality improved during the quarter with gross non-performing assets (NPA) as a percentage of gross advances falling 71bps QoQ to 28.72 per cent. Net NPA also declined 72bps to 5.25 per cent sequentially in same period.
Recovery from NPAs was Rs3,136 crore, it added.
Provisions and contingencies fell sharply by 90.75 per cent sequentially to Rs521.95 crore during the quarter ended 31 December 2019, and by 92.01 per cent year-on-year.
"Provision coverage ratio (including technical write-offs) improved to 92.41 per cent as of 31 December 2019, from 91.25 per cent in the quarter ended 30 September 2019," IDBI Bank said.
Non-interest income grew significantly by 83.11 percent to Rs 1,278.36 crore and pre-provision operating profit rose by 76.2 per cent to Rs1,277.84 crore compared to year-ago.