New Delhi: IDBI Bank Monday posted widening of loss by nearly threefold to Rs 4,185.48 crore for the third quarter ended December 2018 as bad loans surged.
The bank had reported a net loss of Rs 1,524.31 crore in the corresponding quarter of the previous fiscal.
Total income decreased to Rs 6,190.94 crore for the quarter, compared with Rs 7,125.20 crore in the corresponding quarter a year ago, IDBI Bank said in a statement.
The bank's gross non-performing assets (NPAs) shot up to 29.67 percent of gross advances during the quarter, against 24.72 percent in the year-ago period.
However, net NPAs declined to 14.01 percent of the total advances, from 16.02 percent in the December 2017 quarter.
As a result, the bank's provision for bad loan increased to Rs 5,074.80 crore, compared with Rs 3,649.82 crore a year ago.
However, slippages were Rs 2,211 crore which were lowest in the past seven quarters, Recovery from NPAs improved to Rs 3,440 crore during the quarter, compared with Rs 537 crore in the same period a year ago.
The ownership of the bank has changed from the Government of India to LIC.
The statement further said Life Insurance Corporation of India (LIC) completed acquisition of 51 percent controlling stake in IDBI Bank on January 21 and the bank received total capital of Rs 21,624 crore from the insurer.
On the backdrop of capital infusion from LIC, it said that the bank has achieved regulatory capital requirement as on December 31, 2018, and its common equity tier-1 (CET-1) capital improved to 9.32 percent as on December 31, 2018, against 6.62 percent a year ago.