IDBI Bank posts Q4 loss as provisioning doubles

By: and | Published: May 21, 2016 6:10 AM

IDBI Bank on Friday reported a net loss of Rs 1,735.81 crore for the quarter ended March, against a net profit of Rs 545.94 crore in the year-ago period, owing to more than doubling of provisions.

IDBI Bank on Friday reported a net loss of Rs 1,735.81 crore for the quarter ended March, against a net profit of Rs 545.94 crore in the year-ago period, owing to more than doubling of provisions.

Like most other public sector banks, IDBI Bank received a tax write back of Rs 1,119 crore in the March quarter.

Provisions in Q4 FY16 stood Rs 4,450.15 crore, signifying a rise of almost 160% year-on-year (y-o-y). Managing director and chief executive officer Kishor Kharat said provisions primarily rose as a result of the asset quality review being conducted by the Reserve Bank of India (RBI) under which all banks had to identify and provide for a list of stressed accounts over the last two quarters.

idbi-bank

“The asset quality has much improved. Whatever list was there in AQR, we have dealt with that entire list,” Kharat said, adding that there is nothing to carry forward. “This year we can at least say that the ‘storm is gone’. Whatever will come now, it will be in the natural process,” he said. According to him, all accounts under the AQR have been addressed by the bank.

IDBI Bank’s gross non-performing assets as a percentage of total advances stood at 10.98% in Q4 FY16, 510 basis points (bps) higher than the same quarter previous year. Net NPA rose by 390 bps over the same period to 6.78%.

During the quarter, the bank witnessed doubling of fresh slippages – loans that slipped into the non-performing category. Slippages for the quarter stood at Rs 10,260 crore, against Rs 5,689 crore in the sequential quarter.

CFO resigns

IDBI Bank chief financial officer (CFO) NS Venkatesh has resigned from his role and is expected to join private sector lender Lakshmi Vilas Bank, three people aware of the development told FE.
IDBI Bank Ltd had appointed him as CFO in March last year.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition