With bad loans almost doubling, state-owned IDBI Bank has posted a net loss of Rs 1,735.81 crore for the March quarter of 2015-16 as against a net profit of Rs 545.94 crore during the January-March period of 2014-15. Gross non-performing assets as on March 2016 shot up to 10.98 per cent of gross advances at Rs 24,875 crore as compared to 5.88 per cent (Rs 12,685 crore) a year ago.
This was the bank’s second straight quarter of losses after a net loss of Rs 2,184 crore in the December quarter.
The cumulative loss of 21 public sector banks (PSBs) that have declared their fourth quarter results has crossed the Rs 16,000 crore mark.
The main reason behind this negative swing from a total profit of Rs 4,464 crore that they had reported in the same quarter last year is a 151 per cent surge in provisions, necessitated by their gross non-performing assets almost doubling (Y-o-Y) to over Rs 3 lakh crore. IDBI hopes to raise as much as $1 billion during the year to March by selling non-core assets to fund its growth, MD and CEO Kishor Kharat said. “Now at least we can say the storm is gone,” he said.
IDBI has about Rs 19,000 crore worth of loans where repayments have been delayed beyond 60 days. The Centre has plans to lower its stake in IDBI to below 50 per cent from about 76 per cent currently in a test case for bank reforms. Its total income also decreased to Rs 8,274.58 crore, as against Rs 9,382.37 crore in the year-ago period.