Ailing IDBI Bank posts fourth quarter net loss at Rs 3,200 crore
By Express News Service | Published: 19th May 2017 12:52 AM |
MUMBAI: Higher provisions for bad loans continued to be a drag on ailing IDBI Bank.
Net loss widened to Rs 3,200 crore in the fourth quarter ended March 2017 against Rs 1,735 crore a year ago, while operating profit fell to Rs 1,389 crore from Rs 1,595 crore. For the full year, IDBI’s net loss deepened at Rs 5,158 crore, from Rs 3,664 crore in FY16.
Early this month, RBI invoked Prompt Corrective Action (PCA) framework on IDBI, citing high NPAs and negative returns, but the bank did not specify the risk category it was in. Mandatory action from RBI will imply restrictions on dividend payments, branch rationalisation, management compensation and others.
The bank’s gross NPAs rose to a staggering Rs 44,752 crore, up 27 per cent on a quarter-on-quarter basis, while net NPAs shot up 20.3 per cent to Rs 25,205.8 crore.
The gross NPA ratio for the bank rose to 21.25 per cent as on 31 March 2017, from 15.16 per cent in the
Provisions for NPAs grew multi-fold to Rs 5,333 crore during the fourth quarter of FY17 compared to Rs 185 crore in FY16, while the provision coverage ratio stood at 54.96 per cent towards March-end.
Net interest income during March quarter rose by 14 per cent to Rs 1,633 crore from Rs 1,428 crore during the corresponding quarter of the previous year.