Shares of IDBI Bank plunged more than 12 percent in the morning trade on August 16 after its loss widened to Rs 3,801 crore in the June quarter from Rs 2,409 during the same quarter last year on higher provisions made on bad loans.
Reacting to the news, shares of the company hit a fresh 52-week low of Rs 23.80 on the BSE.
The net interest income (NII) of the company was down 11.1 percent at Rs 1,458 crore against Rs 1,639 crore.
IDBI's gross NPA was up 160 bps to 29.1 percent, while net NPA decreased 210 bps to 8 percent against 10.1 percent, QoQ.
In the absolute term, the net NPA was down 26 percent to Rs 10,963 crore versus Rs 14,837 crore and gross NPA was up to Rs 51,657 crore against Rs 50,028 crore, QoQ.
IDBI Bank is also in talks with investors, including Life Insurance Corporation of India (LIC) to raise Rs 10,000 crore capital by the end of the second quarter to meet minimum regulatory requirements, the bank's MD & CEO Rakesh Sharma said after announcing April-June results on August 14.
This includes Rs 1,500 crore to be realised by the sale of non-core assets, Sharma added. The bank has received binding bids for stake sale in its mutual funds subsidiary, while the process is on for monetising investment in IDBI Federal Life Insurance.
At 0951 hrs, IDBI Bank was quoting Rs 25.05, down 7.73 percent on the BSE.
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