IDBI Bank Q3 loss widens to Rs 2,255 cr as bad loans soar

NEW DELHI: Public sector lender IDBI Bank’s net losswidened further to Rs 2,254.96 crore in the third quarter of 2016-17 due to higher provisions for rising bad loans and fall in income.

The bank had reported a net loss of Rs 2,183.68 crore in the October-December quarter of previous fiscal 2015-16.

“Total income has decreased to Rs 7,104.21 crore for the quarter ended December 2016 from Rs 7,361.86 crore in the same quarter a year ago,” IDBI Bank said in a regulatory filing.

Bank’s gross non-performing assets (NPA) shot up to 15.16 per cent of gross advances during the December quarter of 2016-17, against 9.84 per cent in the same period a year ago.

Net NPAs too rose to 9.61 per cent of net advances at December-end, from 4.60 per cent in December 2015.

Gross NPAs were Rs 35,245.33 crore as on December 31, 2016, against Rs 19,615.22 crore year ago. Net NPAs were of the order of Rs 20,949.11 crore, up from Rs 9,612.80 crore.

The provisions and contingencies were at Rs 3,205.52 crore for the quarter, against Rs 3,722.67 crore in the year-ago period. Of this, provision to cover bad loans was Rs 2,357.21 crore, up from Rs 1,714.93 crore year ago.

Total business–deposits and advances–of the bank stood at Rs 5.16 lakh crore as on December 31, 2016, against Rs 4.43 lakh crore, registering a growth of 16.34 per cent on the year.

Deposits grew by 27.06 per cent to Rs 2.98 lakh crore at the end of December quarter of 2016-17 while advances were up by 4.31 per cent to Rs 2.19 lakh crore

source”cnbc”