IDBI Bank Q3 net loss widens to Rs 5,763 cr, NPAs at 29%

IDBI Bank had posted a net loss of Rs 4,185.48 crore during the corresponding October-December period of the previous fiscal year.

IDBI Bank on Tuesday reported widening of its standalone net loss to Rs 5,763.04 crore for the third quarter ended December as bad loans remained at an elevated level.

The lender had posted a net loss of Rs 4,185.48 crore during the corresponding October-December period of the previous fiscal year.

Total income during the three months to December 2019, however, grew to Rs 6,215.60 crore from Rs 6,190.94 crore in the year-ago period, IDBI Bank said in a regulatory filing.

The LIC-promoted bank continued to witness high proportion of bad loans, with gross non-performing assets (NPAs) at 28.72 per cent of the gross advances at end of December 2019, little lower than 29.67 per cent in the corresponding period of the previous fiscal.

In value-terms, gross bad loans stood at Rs 49,502.68 crore, lower than Rs 55,360.38 crore earlier.

Net NPA ratio, however, came down substantially to 5.25 per cent (Rs 6,805.49 crore) from 14.01 per cent (Rs 21,360.49 crore).

Provisions for bad loans were cut significantly to Rs 440 crore from Rs 5,074.80 crore in the December quarter of 2018-19. Likewise, the overall provisions and contingencies too reduced to Rs 521.95 crore from Rs 6,530.73 crore.

On a consolidated basis, the bank reported net loss of Rs 5,728.70 crore for the reported quarter as against a net loss of Rs 4,165.21 crore a year earlier. Income came in at Rs 6,267.23 crore during the quarter, slightly up from Rs 6,243.93 crore.

The bank said its authorised capital increased to Rs 25,000 crore from Rs 15,000 crore on October 22, 2019, when it allotted over 134.85 crore shares to LIC at a price of Rs 35.17 per share and 129.57 crore shares to the government at the same price through preferential allotment the following day.

"Post allotment (of shares), the shareholding of LIC stands at 51 per cent and that of GoI (central government) stands at 47.11 per cent," it said.

Further, the bank said in respect of RBI referred NCLT accounts (list 1 and 2), it is holding a total provision of Rs 22,644.40 crore (100 per cent of total outstanding including technically write-off cases) as on December 31, 2019.

The bank's provision coverage ratio (including technical write-offs) was 92.41 per cent as on December 31, 2019.

During the quarter, the bank made additional provisions of Rs 1,678.65 crore over and above the norms in respect of certain borrower accounts in view of the inherent risk and uncertainty of recovery in these accounts, it added.

Further, IDBI Bank said it has restructured 593 accounts amounting to Rs 30.91 crore up to December 31, 2019 and treated them as standard assets.

It also said it has exercised the lower tax option permitted under the Taxation Laws (Amendment) Act, 2019.

Accordingly, the bank has re-measured its net DTA (Deferred Tax Asset) recognised till September 30, 2019 based on the tax rate prescribed in the said section, resulting in a one-time reversal of Rs 6,273.04 crore (Rs 5,502.77 crore considering DTA as on March 31, 2019), it said.

"For the current quarter the net DTA reversal works out to Rs 245.89 crore resulting into total reversal of DTA of Rs 6,518.93 crore," IDBI Bank said.

Stock of the bank closed at Rs 37 on BSE, up 2.07 per cent from its previous close.