Q3 Results: IDBI Bank Reports Loss For Ninth Straight Quarter
IDBI Bank Ltd. reported a loss for the ninth straight quarter even as its asset quality improved.
Net loss of India’s worst lender by asset quality widened to Rs 4,185 crore in the quarter ended December from Rs 1,524.3 crore a year ago, according to an exchange filing by the lender now controlled by Life Insurance Corporation of India.
The net interest income, or core income, also fell 18.5 percent year-on-year to Rs 1,356.80 crore.
The gross non-performing assets ratio, however, improved to 29.67 percent in the third quarter compared to 31.78 percent in the July-September period. The net non-performing assets stood at 14.01 percent against 17.30 percent in the previous quarter. Provisions towards bad loans stood at Rs 5,074.8 crore compared with Rs 5,481.64 crore in the September quarter.
The bank plans to get out of the Prompt Corrective Action framework by September 2019, according to its managing director and chief executive officer, Rakesh Sharma. “We are expecting a recovery of Rs 4,500 crore in the next quarter and Rs 10,000-12,000 crore recovery in the next year, which will improve our net NPA ratio,” Sharma said in an interaction with BloombergQuint.
The insurance regulator in June permitted LIC to pick up to a 51 percent stake in debt-ridden IDBI Bank. In December, LIC pumped in Rs 14,500 crore into the bank and another Rs 5,030 crore in January.
IDBI Bank Ltd. said that it has sought approval from the Reserve Bank of India for a name change, in an exchange filing. The bank has suggested two options to the regulator: LIC IDBI Bank or LIC Bank.
Shares of IDBI Bank fell as much as 7.5 percent after the earnings announcement, compared with a flat NSE Nifty 50 Index.
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