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IDBI Bank's net loss widened for the March quarter to Rs 5,662.76 crore YoY on weakening asset quality and rise in provisions.
The loss reported a year ago stood at Rs 3,199.77 crore, highest by a bank in the fourth quarter ending 2017. In the December end 2017 quarter, the loss stood at Rs 1,524 crore.
NII or net interest income (difference between interest earned and paid) declined by 43.9 percent to Rs 915.47 crore in the January to March quarter 2018, as compared to Rs 1,633.3 crore in the same quarter in 2017.
During the quarter under review, IDBI Bank's provisions for non-performing assets rose by 77.9 percent to Rs 10,773.30 crore as against Rs 6,054.39 crore in the year-ago period.
This helped the bank shoot up its provision coverage ratio (PCR) to 63.40 percent for FY18 from 54.96 percent in FY17.
Total slippages into bad loans jumped by Rs 12,823 crore, of which about Rs 9,000 crore was due to RBI circular
Commenting on the bank's Q4 performance, CEO and MD Mahesh Kumar Jain said: "Net interest margin improved to 1.81 percent as on March end 2018 from 1.62 percent as on March 2017. Large part of the legacy accounts are over and most of the stress is recognised. As a part of strategy, today our Board has approved to sell Rs 21,397 crore worth of NPA book to be put out on sale consisting of 30 large accounts."
On the bank’s strategy and key decisions taken in the quarter, Jain said that the bank relocated 124 ATMs, closed 25 branches and 31 loss-making branches will be closed down soon.
He also informed its IT subsidiary InTech will soon have a new CEO.
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