IDBI Bank Q3 net loss rises to Rs 4,185 cr on higher bad loan provisions

IDBI Bank's balance sheet continued to bleed in the third quarter ended December 2018 (Q3 FY19) on higher provisions for bad loans. It posted a net loss of Rs 4,185 crore in Q3 FY19, up from Rs 1,524 crore in Q3 FY18. 

Its stock closed four per cent lower at Rs 50 per share on BSE.

Its net interest income (NII) declined by 19 per cent to Rs 1,357 crore in Q3 FY19 from Rs 1,666 crore in the third quarter of the last financial year (March 2018). Its other income declined by 47 per cent to Rs 698 crore in Q3 from Rs 1,328 crore during the same period in the previous financial year. 

The bank, which is now 51 per cent owned by Life Insurance Corporation of India (LIC), is under Prompt Corrective Action (PCA). Such lenders, reeling under bad loans, face restrictions on big-ticket corporate loans, opening new branches and hiring. 

Its advances shrank by nine per cent to Rs 1.8655 trillion in Q3 FY19 from Rs 2.04768 trillion during the same period in the previous financial year. Its deposits also dipped by three per cent to Rs 2.29966 trillion.

Its asset quality remains under severe pressure. Its gross non-performing assets (NPAs) stood at 29.67 per cent at the end of December 2018. Its net NPAs were at 14.01 per cent. 

Its capital adequacy ratio was at 12.51 per cent, as against 11.93 per cent a year ago.