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IDBI Bank share price rises 5% after lender narrows Q2 loss to Rs 3,459 crore

IDBI Bank share traded 3.20% higher at Rs 33.85  at 10:00 am. 1.04 lakh shares of the bank exchanged hands amounting to turnover of Rs 36.51 lakh. Its market cap rose to Rs 26,187 crore on BSE.

twitter-logo BusinessToday.In        Last Updated: November 11, 2019  | 10:43 IST
IDBI Bank share price rises 5% lender narrows Q2 loss to Rs 3,459 crore

IDBI Bank share price rose in trade today after the lender reported narrowing of losses for the quarter ended September. IDBI Bank share price gained up to 4.8% to Rs 34.80 compared to the previous close of 32.80 on BSE. IDBI Bank stock opened at Rs 33.80. 

At 10:00 am, the scrip traded 3.20% higher at Rs 33.85. 1.04 lakh shares of the bank exchanged hands amounting to turnover of Rs 36.51 lakh. Its market cap rose to Rs 26,187 crore on BSE.

Also read: Blame it on farm loan waivers! SBI, BoI, IDBI Bank see spike in agriculture NPAs

IDBI Bank reported narrowing of losses at Rs 3,459 crore for Q2 compared to the net loss of Rs 3,602 crore in the year-ago period. Improving asset quality and better margins helped the crippled IDBI Bank to marginally narrow its net losses in the September quarter even though the lender chose to make accelerated provisions for stressed assets.

The management attributed the losses to "accelerated provisions to the tune of Rs 3,425 crore, helping it take the provision coverage ratio to 91.25 from 68.72 from a year ago."

The Life Insurance of Corporation-controlled bank has been under the prompt corrective action of the Reserve Bank for more than a year. Managing director and chief executive Rakesh Sharma said total provisions during the quarter stood at Rs 4,453 crore. However, the key net interest margin improved by 53 basis points to 2.33 percent during the reporting, massively up from 1.80 percent a year ago.

Also read: IDBI Bank's board approves preferential issue to LIC, government

Gross NPA ratio stood at 29.43, marginally better than 31.78 it had reported in the year-ago period, while the net NPA ratio came down to third at 5.97 from a high 17.30. Tier 1 capital and CRAR stood at 9.52 percent and 11.98 percent, respectively. During the quarter, the bank received Rs 4,743 crore from LIC and Rs 4,557 crore from government aggregating to Rs 9,300 crore. Fresh slippages stood at Rs 2,059 crore while recoveries and upgrades were to the tune of Rs 1,759 crore.

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