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IDBI Bank’s net loss widened to ₹2,410 crore in the first quarter against ₹853 crore in the year-ago quarter due to a huge jump in loan loss provisions.
The net loss in the reporting quarter, however, is lower than the preceding quarter’s ₹5,663 crore.
The public sector bank, which has been placed under the RBI’s prompt corrective action (PAC) framework to nurse it back to health, saw its gross non-performing assets (GNPAs) rise to 30.78 per cent of gross advances as of June-end 2018 against 27.95 per cent as of March-end 2018.
Life Insurance Corporation of India is planning to up its stake in the bank to 51 per cent from 7.98 per cent.
Net interest income was up 17 per cent year-on-year (y-o-y) at ₹1,639 crore (₹1,402 crore in the year-ago quarter). Other income was down 6 per cent at ₹643 crore (₹683 crore).
During the reporting quarter, the case of Bhushan Steel was resolved in the National Company Law Tribunal, and an amount of ₹329 crore was booked towards interest income, the bank said.
Operating profit was up 28 per cent y-o-y at ₹1,081 crore (₹843 crore). Net interest margin improved to 2.17 per cent in the reporting quarter from 1.72 per cent in the year-ago quarter.
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