Shares of IDBI plummeted Friday and touched their 16-year low after the bank posted its Q1FY20 results on Wednesday. Today, on BSE, the shares of IDBI Bank dropped to Rs 23.80, down 12.3 per cent against the previous close.
Shares of IDBI plummeted Friday and touched their 16-year low after the bank posted its Q1FY20 results on Wednesday. Today, on BSE, the shares of IDBI Bank dropped to Rs 23.80, down 12.3 per cent against the previous close. Currently, the shares are trading at Rs 25.10 per share, 7 per cent higher than the last close. The IDBI Bank reported a loss of Rs 3,800.84 crore against the loss of Rs 2,409.89 crore during Apr-Jun of last year owing to higher provisions and lower net interest income. The bank made provisions of Rs 6,332.05 crore for the June quarter as compared with Rs 5,235.96 crore during the same period in the previous year. IDBI registered net interest income at Rs 1,457.73 crore for the first quarter of FY20 as compared with from Rs 1,638.62 crore a year ago.
The bank’s asset quality improved during Apr-Jun, with gross non-performing assets (NPAs) ratio – bad loans as a percentage of gross advances – shrinking to 29.12 per cent as against 30.78 per cent in the same quarter of last year. Net NPA fell to 8.02 per cent during June quarter as compared to 18.76 per cent in the corresponding quarter last year.The operating profit of the bank fell by 12 per cent 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 on June 30, 2019, as against Rs 85,180 crore in Apr-Jun year ago, an increase of 16.92%. Share of CASA in total deposits improved to 43.15% as on June 30, 2019, as against 35.51% during the same period of last year. The largest insurance company LIC completed the acquisition of IDBI Bank in January this year by acquiring a 51 per cent controlling stake in the latter.