IDBI Bank Q2 net loss narrows to �3,459 crore

 thehindu.com  11/08/2019 17:20:20 

IDBI Bank on Friday reported a loss of 3,459 crore for the second quarter ended September 30 as provisions for bad loans stayed elevated. This compares with a loss of 3,602 crore a year earlier.

The bank  which is under the prompt corrective framework of RBI  has made a provision of 3,544.93 crore for bad loans in the reporting period compared with 5,481.64 crore a year ago.

Gross NPA ratio improved to 29.43% for the quarter from 31.78% a year ago, and 29.12% as on June 30, 2019. Fresh slippages stood at 2,059 crore while recoveries and upgrades were to the tune of Rs 1,759 crore.

Net interest income for period grew by 25% to 1,631 crore, while net interest margin improved by 53 basis points to 2.33% for the second quarter as compared to 1.8% a year ago.

The banks management attributed the losses to accelerated provisions to the tune of 3,425 crore, which helped the lender to improve provision coverage ratio to 91.25% from 68.72% from a year ago.

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