A sharp reduction in loan loss provisions helped IDBI Bank pare its net loss by 73 per cent in the first quarter ended June 30, 21017, compared with the preceding quarter. However, it continued to reel under asset quality pressure.

In the reporting quarter, the public sector bank’s net loss stood at ₹853 crore against a net loss of ₹3,200 crore in the preceding quarter. In the June 2016 quarter, the bank had posted a net profit of ₹241 crore.

Net interest income (the difference between interest earned and interest expended) was down 18 per cent year-on-year at ₹1,402 crore. Other income too declined 21 per cent y-o-y at ₹720 crore.

Loan loss provisions declined to ₹1,069 crore from ₹5,333 crore in the preceding quarter. These provisions, however, were lower at ₹768 crore in the year-ago quarter.

Gross non-performing assets (GNPAs) rose by ₹5,420 crore during the reporting quarter to ₹50,173 crore.

GNPAs as a percentage of gross advances were up to 24.11 per cent as at June-end 2017 against 21.25 per cent as at March-end 2017.

Deposits were down about 4 per cent y-o-y to ₹2,43,058 crore. Advances declined about 14 per cent y-o-y to ₹1,87,266 crore.

On May 9, 2017, IDBI Bank informed the stock exchanges that the Reserve Bank of India has initiated Prompt Corrective Action for the bank in view of high net NPAs and negative return on assets. The bank then said this will not have any material impact on its performance and will contribute to improving internal controls and improvement in its activities.

IDBI Bank shares closed at ₹52.30 apiece, down 0.57 per cent over the previous close on the BSE.

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