Taasir English News Network | Uploaded on 16-August-2019
IDBI Bank shares fell as much as 11.94 per cent to hit a new 52-week low of Rs. 23.95 after the state-run lender on August 14 after market hours reported that its net loss in April-June period widened to Rs. 3,801 crore as against loss of Rs. 2,410 crore in the quarter last year. On the Bombay Stock Exchange (BSE), shares in IDBI Bank touched an intraday low of Rs. 23.80, falling 12.33 per cent from the previous close. The loss in the first quarter of current financial year widened on the back of sharp increase in provisioning for bad loans or non-performing assets.
At 1:19 pm, shares of the bank traded 8 per cent lower at Rs. 25 apiece on the NSE. On the BSE, the shares of IDBI Bank traded 7.92 per cent lower at Rs. 25 apiece.
The net interest income (NII) of IDBI Bank fell to Rs. 1,458 crore as against Rs. 1,639 crore in same quarter of the last year. Gross non-performing assets (NPAs) of IDBI Bank came in at 29.12 per cent as against 30.78 per cent in the corresponding quarter of the previous year.
The bank’s gross non-performing assets as percentage of total advances came in at 29.12 per cent versus 27.47 per cent in the previous quarter.
IDBI Bank’s provisioning for bad loans increased 52 per cent as the bank provided Rs.7,009.49 crore for bad loans compared with provisioning of Rs. 4,602.55 crore in the same period last year.
The operating profit of the bank fell to Rs. 951 crore as compared to Rs. 1,081 crore made in the corresponding period of last year.
IDBI’s CASA or current and savings account ratio increased to Rs. 99,590 crore, as against Rs.85,180 crore as on June 30, 2018, an increase of 16.92 per cent.
Earlier this year, the country’s largest insurance company LIC completed the acquisition of IDBI Bank in January by acquiring 51 per cent of its controlling stake.