High provisions widen IDBI loss threefold in Q3

The fund infusion from the new owner improved the overall capital adequacy moved up to 12.51 per cent from the 6.22 per cent in Q2FY19.

Published: 05th February 2019 09:18 AM  |   Last Updated: 05th February 2019 09:18 AM   |  A+A-



By Express News Service

NEW DELHI: IDBI Bank, recently taken over by the Life Insurance Corporation of India (LIC), has declared a whopping Rs 4,185.5 crore net loss in the quarter ended December 31, due to high provisions for potential losses from bad loans.

However, the bank is looking at exiting the RBI’s Prompt Corrective Action (PCA) this year, with capital positions improving after LIC brought in Rs 21,000 crore of capital. Its asset quality has also improved.

“The Bank received total capital of Rs 21,624 crore from LIC. On the backdrop of capital infusion from LIC, the Bank has achieved regulatory capital requirement as on December 31, 2018,” the bank said in a statement. It also said it would be “well-positioned to return to a profitable growth path and exit PCA in a time-bound manner, aiding in improvement in its valuation”.

The fund infusion from the new owner improved the overall capital adequacy moved up to 12.51 per cent from the 6.22 per cent in Q2FY19.

The bank has also provided Rs 5,074 crore toward bad loans, a sharp rise from Rs 3,637 crore in the year-ago period. However, bank officials have noted that over Rs 3,000 crore of this is in excess of requirements done expecting reverses in power sector loans.  

Overall, the bank saw slippages of Rs 2,211 crore during the quarter, bringing gross non-performing assets (GNPA) down to 29.67 per cent from an industry high of 31.78 per cent in the previous quarter. Net NPAs stood at 14.01 per cent, down  from 17.30 per cent three months ago. According to the bank’s CEO and MD Rakesh Sharma, recoveries during the quarter stood at Rs 3,440 crore against Rs 537 crore in the year-ago period. The bank targets Rs 4,500 crore in recoveries during the current quarter, and expects to end with a total of Rs 12,000 crore in recoveries in the current financial year.

Meanwhile, the bank’s board has approved a proposal to change the name of the bank to either LIC IDBI Bank or LIC Bank based on RBI’s approval.

GlaxoSmithKline Pharma net up 26%

New Delhi: GlaxoSmithKline Pharmaceuticals on Monday reported a 26 per cent rise in net profit at I112.97 crore for the quarter ended December 31, 2018, mainly on account of one-time gain of I28 crore. It’s profit was I89.69 crore a year ago.

Future Retail Q3 net profit at L201 cr

New Delhi: Future Retail Monday posted a net profit of I201.43 crore for the December quarter of FY19, against a net profit of I183.14 crore for the same period of the previous fiscal, Future Retail Ltd said in a filing. Total income of the company stood at I5,306.28 crore.

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