IDBI Bank’s net loss widened to ₹3,801 crore in the first quarter ended June 30, 2019, against ₹2,410 crore in the year-ago period, as it continued to reel under the burden of heavy loan-loss provisions and grappled with asset-quality issues.
In the reporting quarter, the bank made a whopping ₹7,009 crore loan-loss provision, against ₹4,603 crore in the year-ago period. Life Insurance Corporation of India (LIC) had acquired 51 per cent stake in IDBI Bank from the government in January 2019.
Net interest income (the difference between interest earned and interest expended) declined 11 per cent year-on-year (y-o-y) to ₹1,458 crore. Other income, comprising commission, exchange and brokerage, profit on sale of investments, and recovery from written-off cases, was up 30 per cent y-o-y to ₹833 crore.
Fresh slippages increased by ₹3,486 crore during the reporting quarter, against ₹1,781 crore in the preceding quarter.
Recoveries and upgradation stood at ₹867 crore (₹1,089 crore in the preceding quarter). Gross non-performing assets (GNPAs) increased to 29.12 per cent of gross advances as of June-end 2019, against 27.47 per cent as of March-end 2019. The bank said two cases of power projects, aggregating to about ₹2,000 crore, were downgraded in the reporting quarter on account of a letter received from the RBI.
Due to higher provisioning, net NPAs declined to 8.02 per cent of net advances, against 10.11 per cent. The provision coverage ratio improved to 87.79 per cent as of June-end 2019 from 82.88 per cent as of March-end 2019.
Corporate advances declined 14 per cent y-o-y to ₹85,230 crore. Retail advances were up 4 per cent y-o-y to ₹92,185 crore, mainly on the back of growth in housing loans. Global deposits declined 4 per cent y-o-y to ₹2,30,784 crore.