IDBI Bank’s fourth-quarter losses widened to ₹3,200 crore as bad loans surged.
The lender reported a loss of ₹1,736 crore during the comparable period of the previous fiscal. The Reserve Bank of India earlier this month had imposed restrictions on the bank.
In the third quarter, the state-owned lender reported a loss of ₹2,255 crore.
The loss widened as provision for bad loans zoomed to ₹5,333 crore during the fourth quarter from ₹186 crore in the year-ago period. Its gross non-performing assets (NPA) has gone up to ₹4,4753 crore as on March-end from ₹2,4875 crore a year ago. The gross NPA ratio is now at 21.25% while net NPA at 13.21% of net advances.
For the full financial year, the bank posted a loss of ₹5,158 crore as compared to a loss of ₹3,665 crore in the previous fiscal.
The net interest income for the lender has gone up by 14.43% to ₹1,633 crore for the quarter ended March 2017 while net interest margin increased by eight basis points from 1.67% as on March 2016 to 1.75% as on March 2017, IDBI said in a statement.
RBI’s curbs
The banking regulator had imposed restrictions on the lender earlier this month after it breached the second risk threshold.
Restrictions on dividend distribution, domestic and overseas branch expansion, higher provision, are some of the restrictions that the bank is facing.
IDBI Bank’s stock fell by almost 8% on the Bombay Stock Exchange to close the day at ₹70.
