IDBI Bank has reported ₹198 crore on net losses in the second quarter of the current financial year as compared to ₹56 crore profit in the same period of the previous year.
Losses have come down sequentially from ₹853 crore reported in the April-June period. Fresh slippages to bad loans were reduced to ₹3,381 crore in the quarter ended September 2017 as compared to ₹5,587 crore during the same period of the previous year and ₹7,659 crore of the previous quarter. The bank has made a provision of ₹1,276 crore for NPAs as compared to ₹920 crore of the year earlier period and ₹1,069 crore in the previous quarter.
A quarter of the bank’s loan has turned bad with the gross NPAs increasing sequentially to 24.98% from 24.11% and from 13.05% recorded a year ago.
The bank reported 3.63% y-o-y increase in net interest income in Q2 as interest expenses fell more sharply than interest income. The bank has reduced the operating expenditure by 21.15% y-o-y to ₹1,152 crore and by 7.47% sequentially. The bank has also gained ₹1,330 crore by selling non-core assets during the quarter.
Net Interest Margin (NIM) stood at 2.17% showing improvement of 27 basis points as compared to quarter ended September 2016 and 45 basis points as compared to quarter ended June 2017.
