Provisions and contingencies worth ₹3,723 crore set aside for the third quarter of fiscal (FY16) resulted in IDBI Bank booking a net loss of ₹2,184 crore. The public sector bank had booked a net profit of ₹103 crore in the year-ago quarter.

Most public sector banks have been booking losses this quarter and IDBI was no exception. Speaking about the losses, Kishor Kharat, MD and CEO, said: “We have done prudential provisioning even for some accounts which have not yet been downgraded.

“Next quarter also we will take this stand of clean-up. When the regulator and government are with us, this is the right time to do.”

The bank plans to clean up all bad loans in its balance sheet by this fiscal and focus on the health of restructured loans next fiscal, said Kharat.

The bank is expecting 10-12 per cent credit growth in the fourth quarter and 9 per cent in FY16.

IDBI Bank is also in the process of making strategic debt restructuring of six accounts worth ₹3,500 crore, Kharat said.

The bank’s board will be meeting in New Delhi next week to take strategic decisions with regard to business growth, capital raising through issue of additional Tier-1 bonds, QIP of ₹3,771 crore, besides monetising non-core assets.

In Q3 FY16, the bank’s total business (deposits and advances) stood at ₹4,43,615 crore (₹4,30,502 crore in Q3 FY15).

The bank’s capital adequacy ratio (according to Basel-III norms) increased to 13 per cent from 12.23 per cent a year ago.

Net interest margin (NIM) increased to 1.96 per cent from 1.83 per cent. And gross NPAs rose to 8.94 per cent from 5.94 per cent (in absolute terms, to ₹19,615 crore from ₹12,140 crore).

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