IDBI Bank net loss widens to Rs 3,800 crore

IDBI Bank on Wednesday reported widening of its loss for the June quarter to Rs 3,800.84 crore as against Rs 2,409.89 crore due to higher provisioning for non-performing assets.

The public sector lender, with 46.46% shareholding owned by the central government, also witnessed a decline in its net interest income at Rs 1,458 crore in Q1FY20 from Rs 1,639 crore in the same period last fiscal. The net interest margin also stood at 2.13% in the quarter under review as against 2.17% in the year-ago period.

Operating profit, too, declined to Rs 950.95 crore in the June quarter from Rs 1087.98 crore a year ago.

The lender's gross NPA dropped to Rs 21,657.63 crore in Q1FY20 as against Rs 57,806.84, whereas net NPA fell to Rs 10,963.26 crore from Rs 29,981.07 crore in the year-ago period.

GNPA as a percentage in at 29.12% in Q1FY20 compared to 30.78% in Q1FY19, whereas net NPA as a percentage stood at 8.02% in the quarter under review from 18.76% in the year-ago period.

Provision coverage ratio improved 87.79% in the quarter under review from 64.45% in the year-ago period.

Recovery from NPAs was Rs 729 core in the June quarter of the current fiscal. First-time NPAs reduced by 55% to Rs 3,486 crore from Rs 7,799 crore.

IDBI Bank shares on Wednesday closed on BSE at Rs 27.15 apiece, up 1.31% the previous close. The lender announced its June quarter results post market hours.