Mumbai: IDBI Bank, majority owned by Life Insurance Corporation of India (LIC), Thursday narrowed net loss to Rs 4,918 crore in the quarter ended March due to lower provision for bad loans.
The bank had reported a net loss of Rs 5,663 crore in the same period last year.
"Our losses have come down in the quarter as provisions for non-performing loans (NPAs) reduced," its managing director and chief executive Rakesh Sharma told reporters.
Provisions for non-performing loans declined to Rs 7,233 crore in the quarter from Rs 10,773 crore in the same period last year.
For the full year, lender reported a net loss of Rs 15,116 crore as against a net loss of Rs 8,238 crore in FY18.
In January 2019, LIC completed acquisition of 51 percent controlling stake in the bank. The state-run life insurer infused Rs 21,624 crore into the bank.
Net interest margin improved to 2.26 percent from 1.19 percent.
Gross non-performing assets ratio improved to 27.47 percent as against 27.95 percent, while net NPA was at 10.11 percent as against 16.69 percent.
The bank, which under the Reserve Bank of India's (RBI) prompt corrective action (PCA), expects to bring down its net NPA ratio to below 9 percent by June-end and below 6 percent by September quarter.
"Our target is to come out of PCA and become profitable. We expect by September or maximum by December quarter we will be out of PCA," Sharma said.
Total provision stood at Rs 6,314 crore as against Rs 8,026 crore.
Provision Coverage Ratio improved to 82.88 percent as on March 31, 2019 from 63.40 percent as on March 31, 2018.
Fresh slippages reduced to Rs 1,781 crore from Rs 18,023 crore in the year-ago period.
Recovery in the quarter stood at Rs 927 crore.
The bank has set a recovery target of Rs 13,000 crore, including Rs 2,000 crore from sale to asset reconstruction companies in the current financial year.
Sharma said the bank is looking to raise Rs 1,500 crore through sale of non core assets- IDBI Federal Life Insurance and IDBI Mutual Fund.
The bank is also looking at raise Rs 2,500-3,000 crore through Tier 1 bonds and Rs 6,500 crore from markets.
Its CASA increased to Rs 96,730 crore as on March 31, 2019 as against Rs 92,102 crore as on March 31, 2018.
The lender's scrip ended at 2.57 percent to Rs 37.95 apiece on BSE which ended at 39,831.97 Thursday.