IDBI Bank, which the government has been trying to privatise in the past couple of years, has been the worst performer among public sector banks owing to mounting losses and rising bad loans.
For the year ended March 31 2018, IDBI Bank’s gross NPA rose to 27.95 per cent, up from 21.25 per cent as on March 31, 2017.
This means that out of every Rs 100 lent by the bank, Rs 27.95 is stuck as defaulted amount.
In absolute terms, the bank’s gross NPAs jumped to Rs 55,588.26 crore against Rs 44,752.59 crore on a year-on-year basis.
The bank reported a net loss of Rs 8,238 crore in 2017-18, up from Rs 5,158 crore in 2016-17. Most of its bad loans are in steel, textiles and construction sectors.
In addition to the asset quality pain, the bank reported a large divergence in the assessment of NPAs — or understatement of bad loans — in 2017.
The divergence in gross NPAs stood at Rs 10,281.9 crore — or 23 per cent of the gross NPAs — reported by the bank at the end of March 2017. It also reported a divergence in provisions of Rs 4,464 crore for FY17.
Several of its former executives have been chargesheeted by probe agencies recently for lapses in credit sanctioning.