IDBI Bank's Q4 net loss nearly doubles to Rs 3,200cr
IDBI Bank’s net loss widened to Rs 3200 crore in Q4 of FY17 following a substantial surge in non-performing assets (NPAs) to nearly double from the year-ago period.
IDBI Bank’s net loss widened to Rs 3200 crore in Q4 of FY17 following a substantial surge in provisioning towards the non-performing assets (NPAs) which to doubled from a year-ago period.
The state-owned bank had posted a net loss of Rs 1,736 crore in the corresponding quarter last year while the loss in the previous December quarter stood at Rs 2,255 crore.
Provisions towards bad loans during the quarter also increased by 38 percent to Rs 4590 crore.
During the quarter, gross NPAs, too, at 21.25 percent of total loans of Rs 44,753 crore, up from 10.98 percent at Rs 24,875 crore a year ago. Sequentially, the gross NPAs worsened from 15.16 percent as on December, 2016.
Net NPAs also shot up to 13.21 percent as against 6.78 percent as on March end and 9.61 percent as on December end, 2016.
Net loss for the full year FY17 also worsened to Rs 5158 crore , up over 40 percent from Rs 3665 crore in FY16.
The Reserve Bank of India has already initiated Prompt Corrective Action for breaching the NPA and Return on Assets (ROA) levels.
However, net interest income of the bank rose 14.5 percent to Rs 1,633 crore as against Rs 1,427 crore in the same quarter last year.
Net interest margins for the full year also edged up by 8 basis points to 1.75 percent as on March 2017 from 1.67 percent as on March 2016 .Shares of the bank ended 8.43 percent down at Rs 69.50 per share after the company reported subdued quarterly numbers for Q4FY17.