IDBI Bank narrows Q4 net loss to Rs 4,918 crore; total income decreases to Rs 6,616.06 crore
The LIC-promoted bank had posted a net loss of Rs 5,662.76 crore during the corresponding January-March quarter of 2017-18
Total income during the March quarter decreased to Rs 6,616.06 crore as against Rs 7,915.22 crore in the year-ago
Gross non-performing assets (NPAs) stood at 27.47 percent of the gross loans at end of 31 March, 2019
Net NPAs or bad loans came down to 10.11 percent of the net loans at the end of March 2019, as against 16.69 percent a year earlier
New Delhi: IDBI Bank Thursday reported narrowing of its net loss to Rs 4,918.44 crore on a standalone basis for the March quarter of the last fiscal due to a decrease in bad loan provisions.
The LIC-promoted bank had posted a net loss of Rs 5,662.76 crore during the corresponding January-March quarter of 2017-18.
Total income during the March quarter decreased to Rs 6,616.06 crore as against Rs 7,915.22 crore in the year-ago, the bank said in a release.
For the entire 2018-19 fiscal, its standalone net loss widened to Rs 15,116.30 crore from Rs 8237.92 crore a year ago. Total income during the year fell to Rs 25,371.53 crore from Rs 30,040.11 crore in the preceding fiscal.
On a consolidated basis, the bank reported a net loss of Rs 15,012.97 crore in 2018-19, as against Rs 8,157.11 crore in 2017-18. Total income during the fiscal was down at Rs 25,637.43 crore as against Rs 30,294.31 crore.
Gross non-performing assets (NPAs) stood at 27.47 percent of the gross loans at end of 31 March, 2019, as against 27.95 percent by the end of March 2018.
Net NPAs or bad loans, however, came down to 10.11 percent of the net loans at the end of March 2019, as against 16.69 percent a year earlier.
In value terms, gross NPAs stood at Rs 50,027.94 crore as against Rs 55,588.26 crore. Net NPAs were at Rs 14,837.44 crore, down from Rs 28,665.14 crore.
The private sector lender made provisions of Rs 7,233.26 crore to cover for bad assets during January-March 2018-19, down from Rs 10,773.30 crore parked aside a year ago.
Country's largest insurer LIC completed the acquisition of 51 percent controlling stake in IDBI Bank on 21 January, 2019.
The bank received total capital of Rs 21,624 crore from LIC, IDBI Bank said.
IDBI Bank said post the capital infusion, its tier-1 equity capital improved to 8.91 percent at end March 2019, as against 7.42 percent a year ago.
Capital to risk-weighted assets ratio improved to 11.58 percent, compared to 10.41 percent and risk-weighted assets reduced by 17 percent to Rs 1.83 lakh crore by end of March 2019 as against Rs 2.21 lakh crore a year ago, IDBI Bank said.
Also, the provision coverage ratio (PCR-including technical write-offs) improved to 82.88 percent from 63.40 percent.
Recovery from technically write off accounts improved by 113 percent to Rs 468 crore in FY19 as against Rs 219 crore in FY18, the bank said, adding recovery from NPAs was Rs 9,326 crore during the fiscal (including interest recovery of Rs 2,883 crore).
Highlighting the focus area going forward, IDBI Bank said emphasis will be on retail business, improving asset quality and efficiency.
There will be focus on NPA resolution, recovery from written off cases and improving the provision coverage and containing the slippages among others, it added.
The stock of the bank closed 2.57 percent higher at Rs 37.95 on the BSE.
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