Private sector lender IDFC First Bank reported a net loss of ₹617.35 crore in the quarter ended June 30, 2019 as against a net profit of ₹181 crore a year ago.

“This was primarily due to additional provisioning for two identified stressed Corporate Loans to a Housing Finance Company and a Financial Services company (recently downgraded by credit rating agencies), taking the provision coverage on these accounts to 75 per cent,” the lender said in a release late on Wednesday evening, adding that the provisions on these accounts is adequate and it does not expect to take any more provisions on this account in the near future.

Provisioning during the first quarter of 2019-20 increased to ₹1,280 crore, as against ₹33.99 crore made in the June quarter of the last fiscal. Its gross non-performing assets stood at 2.66 per cent of gross advances as on June 30, 2019 as compared to 3.24 per cent a year ago while net NPAs were 1.35 per cent at the end of the first quarter this fiscal from 1.63 per cent a year ago.

The bank said that the asset quality in the retail loan business remains stable and the rest of the portfolio continues to perform normally, with no major concerns being witnessed in the rest of the loan book.

IDFC First Bank scrip gained 4.91 per cent in early morning trade on BSE.

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