New Delhi, Jan 31 (PTI) Public sector lender IDBI Banks net loss narrowed to Rs 1,524.31 crore in the third quarter of 2017-18 even though provisions for bad loans rose.
The bank had reported a net loss of Rs 2,254.96 crore in the October-December quarter of previous fiscal.
Total income decreased to Rs 6,645.81 crore for the quarter ended December 2017 from Rs 7,104.21 crore in the same quarter a year ago, IDBI Bank said in a statement.
Banks gross non-performing assets (NPA) shot up to 24.72 per cent of gross advances during the quarter, against 15.16 per cent in the year-ago period.
Net NPAs too rose to 16.02 per cent of net advances, from 9.61 per cent in December 2016.
As a result, the banks provision for bad loan increased to Rs 3,649.82 crore as compared to Rs 3,135.53 crore.
During the quarter, NPA write-off surged more than 5 folds to Rs 4,213.51 crore, as compared to Rs 778.32 crore in the corresponding quarter previous fiscal.
As part of the capital infusion, the government infused Rs 2,729 crore on December 29, 2017, by way of preferential allotment of equity shares and the same is shown as Equity Share Application Money as on December 31, 2017, it said.
During the quarter, in line with the banks strategy, it divested investment in Small Industries Development Bank of India, which has resulted in capital gain of Rs 616.20 crore.
On January 24, the government announced to infuse capital of Rs 10,610 crore into IDBI Bank.
Of which Rs 2,729 core has been received by the bank in December 2017 and the same has been considered in capital computation as on December 31, 2017.
IDBI Bank joined TReDS (Trade Receivables Discounting Scheme) platform with Receivables Exchange of India Limited (RXIL), a joint venture of NSE and SIDBI.
TReDS is a scheme for setting up and operating an institutional mechanism to facilitate the financing of trade receivable of MSMEs, it said, adding, the main objective is to ensure timely realisation of trade receivables and price discovery for MSMEs. PTI DP BAL