 "IDBI Bank posts Rs 24.10 bn loss in Q1, hurt by higher provisioning of NPAs")
State-owned IDBI Bank on Tuesday reported widening of loss to Rs 24.09 billion for the first quarter ended June 30, hurt by higher provisioning for bad loans.
The bank had posted a loss of Rs 8.53 billion in the April-June quarter of last fiscal, 2017-18.
Its total provisioning for non performing assets (NPAs) or bad loans more than doubled to Rs 52.36 billion during the first quarter of 2018-19, from Rs 20.35 billion in the year-ago period.
The provision for bad loan alone was Rs 46.02 billion, as against Rs 18.73 billion.
State-owned insurance behemoth LIC has expressed interest in taking up to 51 per cent stake in the debt ridden IDBI Bank. The Union Cabinet has already given its approval to the proposal on August 1.
The total income of the bank for the quarter under review also declined to Rs 64.02 billion, as against Rs 67.03 billion a year ago, IDBI said in a regulatory filing.
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The bank's gross non-performing assets (NPAs) soared to Rs 578.06 billion, or 30.78 per cent of total advances, in the April-June quarter of 2018-19, from Rs 501.73 billion or 24.11 per cent in the year-ago period.
Net NPA too increased to 18.76 per cent, up from 15.8 per cent in the year-ago quarter.
The bank has made a preferential allotment of equity shares for Rs 78.81 billion to the Government of India against the fund infusion made on March 27, 2018.
Finance Minister Piyush Goyal had said the government has already made a capital infusion of about Rs 160 billion in IDBI Bank and LIC will be getting a "strong organisation which has the capacity not only to service its debts but also strengthen and grow from here onwards".
After the transaction, IDBI Bank would become a subsidiary of LIC and the insurer would have 51 per cent stake.
Currently, LIC holds 7.98 per cent stake in the debt-ridden public sector bank.