IDFC First Bank registered a net loss of Rs 1,638.89 crore in the third quarter of the fiscal, as against a net loss of Rs 1,538.01 crore in the same period a year ago.

The bank attributed the loss to provisioning of Rs 1,622 crore towards a stressed telecom account.

“Bank took 50 per cent provision cover of Rs 1,622 crore towards exposure of Rs 3,245 crore to a legacy stressed telecom account, and Rs 110 crore towards a legacy infrastructure account,” it said.

During the quarter ended December 31, 2019, net interest income grew 34 per cent to Rs 1,534 crore, as against Rs 1,145 crore a year ago. The net interest margin rose to 3.86 per cent in the October to December 2019 quarter, from 2.89 per cent in the corresponding period a year ago.

Gross non-performing assets were 2.83 per cent as of December 31, 2019, as compared to 2.62 per cent as of September 30, 2019. The net NPAs stood at 1.23 per cent as of December 31, 2019, as compared to 1.17 per cent as of September 30, 2019.

“The bank has a legacy exposure of Rs 3,244 crore to this identified telecom company as of December 31, 2019, of which Rs 2,000 crore is in the form of non-convertible debentures and Rs 1,244 crore in the form of non-funded exposure (bank guarantees) for spectrum. There has been no payment default so far from this telecom company,” it said.

IDFC First Bank shares were down 3.86 per cent in early morning trade on BSE.

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