IDFC First Bank reports Rs 617 cr loss for June quarter on higher provisioning for bad loans

New Delhi: IDFC First Bank on Wednesday reported a net loss of Rs 617 crore for the April-June quarter of the current fiscal on account of higher provisioning.

The bank had reported a net profit of Rs 181 crore in the April-June period of the previous fiscal.

 IDFC First Bank reports Rs 617 cr loss for June quarter on higher provisioning for bad loans

Representational image. News18 Hindi

"Bank reported a loss of Rs 617 crore for the quarter ended 30 June, 2019. As a prudent measure, the bank took provision coverage to 75 percent for two identified corporate loans in the financial services sector. Bank believes the provision is adequate and does not expect to take any more provisions on these accounts in the near future," IDFC First said in a statement.

Provisioning during the quarter increased to Rs 1,280 crore, as against Rs 33.99 crore made in the June quarter of the last fiscal.

The gross and net non-performing assets (NPA) of the bank as of 30 June, 2019, stood at 2.66 percent and 1.35 percent.

"We are witnessing strong Year on Year growth of 64 percent in CASA deposits, healthy growth in the retail loan book, increase in net interest margins and expanding product lines," IDFC First Bank MD and CEO V Vaidyanathan said.

Updated Date: Jul 25, 2019 13:27:19 IST