New Delhi: IDBI Bank, a subsidiary of LIC, on Wednesday reported widening of loss to Rs 3,800.84 crore for the first quarter ended 30 June, hurt by higher provisioning for bad loans.
The bank had posted a loss of Rs 2,409.89 crore in the April-June quarter of 2018-19.
Its provisioning for non-performing assets (NPAs) or bad loans zoomed to Rs 7,009.49 crore during the first quarter of 2019-20, from Rs 4,602.55 crore in the year-ago period.
Total provisioning and contingencies during the quarter rose to Rs 6,332.05 crore from Rs 5,235.96 crore.
Total income of the bank for the quarter under review also declined to Rs 5,923.93 crore, as against Rs 6,402.50 crore a year ago, IDBI Bank said in a regulatory filing.
Net interest income of the bank declined to Rs 1,458 crore during the quarter from Rs 1,639 crore in the same period a year ago.
However, the bank’s gross NPAs shrunk to Rs 51,657.63 crore, or 29.12 percent of total advances, in the April-June quarter, from Rs 57,806.84 crore or 30.78 percent in the year-ago period.
Due to increased provisioning, the net NPA declined sharply to 8.02 percent, from 18.76 percent in the year-ago quarter.
Pursuant to RBI directions, the bank has downgraded two standard restructured accounts with total outstanding of Rs 2,22,636 lakh as on 30 June, 2019 and has made full provision against the same, it said.
As a result, the Provision Coverage Ratio (PCR) including technical write-offs improved to 87.79 percent as on 30 June, 2019 as compared to 64.45 percent in the year-ago period.
IDBI Bank is one of the five lenders which is still under the prompt corrective action (PCA) framework of the RBI. The other banks under the framework are United Bank of India, UCO Bank, Central Bank of India and Indian Overseas Bank.
LIC acquired controlling 51 percent stake in IDBI Bank in January this year.