IDBI Bank's net loss widens to Rs 15,013 crore in FY19 on higher provisions
BusinessToday.In May 30, 2019
Private sector lender IDBI Bank on Thursday reported widening of its net loss to Rs 15,012.97 crore on consolidated basis for the financial year 2018-19 due to higher provisions. The bank had posted consolidated net loss of Rs 8,157.11 crore in the financial year 2017-18.
"Consolidated income of the bank declined to Rs 25,637.43 crore from Rs 30,294.31 crore reported during the last fiscal," IDBI Bank said in a filing to the Bombay Stock Exchange.
On the standalone basis, the LIC-promoted bank posted the net loss of Rs 15,116.30 crore against total income of Rs 25,371.53 crore.
The lender's net interest income (NII), which is the difference between interest earned and interest expended, increased by 5 per cent to Rs 5,906 crore. The net interest margin (NIM) improved by 22 basis points to 2.03 per cent.
IDBI Bank's operating profit (including gain on strategic sale) for FY19 dipped to Rs 4,052 as compared to Rs 7,909 crore in FY18.
The bank's provisions and contingencies increased to Rs 26,879.29 crore from Rs 20,501.74 crore in the last year. Provision Coverage Ratio (PCR-including Technical Write-Offs) improved to 82.88 per cent as on March 31, 2019 from 63.40 per cent as on March 31, 2018.
The Mumbai-headquartered bank's asset quality improved in FY19 with gross non-performing assets (NPAs) ratio - bad loans as a percentage of gross advances - declining marginally to 27.47 per cent versus 27.95 per cent in the previous year. Net NPA also fell to 10.11per cent as compared to 16.69 per cent in the corresponding period last year.
On the quarterly basis, the bank's standalone net loss narrowed to Rs 4,918.44 crore from a net loss of Rs 5,662.76 crore during the corresponding quarter of the last year.
Net Interest Income grew by 76 per cent year-on-year to Rs 1,609 crore in Q4FY19, while net Interest Margin improved to 2.26 per cent for Q4-2019 as compared to 1.19 per cent for Q4-2018.
Insurance behemoth Life Insurance Corporation of India (LIC) completed acquisition of 51 per cent controlling stake in IDBI Bank on January 21, 2019. The bank received total capital of Rs 21,624 crore from the LIC, it said.
Meanwhile, IDBI bank shares closed trade at Rs 37.95 apiece, up 2.57 per cent, on the Bombay Stock Exchange.
Edited by Chitranjan Kumar