State-owned IDBI Bank on Tuesday reported a standalone net loss of R2,254.96 crore for the December quarter as the lender’s total income, including interest income, declined both sequentially and year-on-year, and net interest margin contracted.
The bank reported a total income of R7,104.21 crore, down 3.5% y-o-y, of which interest income was R6,553.06 crore. Net interest income, which is the difference between interest earned and interest expended, came in at R850.38 crore, down over 45% year-on-year.
The public sector lender’s provisions for the quarter, which stood at R3,205.52 crore, was around 14% lower than its provisions in the same quarter last year. However, the portion of provisions meant for non-performing loans increased by over 37% over the same period to R2,357.21 crore.
In terms of asset quality, IDBI Bank witnessed a deterioration in the quarter under review, both sequentially and annually. Gross non-performing loans as a percentage of total loans constituted 15.16%, as much as 622 basis points more than in the corresponding quarter a year ago and 211 basis points more than at the end of the September quarter. In absolute terms, GNPAs totalled R35,245.33 crore.
The net non-performing loans ratio also changed by a similar proportion, increasing by 129 basis points from the end of the September quarter and 501 basis points from the December quarter last year to 9.61%. Total net non-performing loans at the end of the quarter stood at Rs 20,949.11 crore.
The public sector bank’s deposits surged during the quarter under review, primarily helped by the government’s decision to withdraw currency notes of R500 and R1,000 in November, which pushed people to deposit most of their cash in bank accounts. When compared to the same quarter last year, the total deposit base was higher by 27% at R2.98 lakh crore.
However, the bank did not witness a similar growth in its loan book, which increased by just over 4% from the end of the corresponding quarter last year to R2.18 lakh crore.
Of IDBI Bank’s total deposits, current account and savings account deposits grew at over 44% year-on-year to R84,660 crore at the end of the December quarter. The bank’s total assets rose by around 19% over the same period to R4.02 crore.