IDBI Bank MD&CEO Rakesh Sharma said on Tuesday that the lender’s slippages are down to ?2,000 crore in the third quarter ending December 2019. Sharma said the recoveries increased to ?3,136 crore during the quarter and expects recoveries of more than ?2,500 crore in the next quarter ending March 2020.
Sharma expects slippages to be in the range of ?800-1,000 crore in the coming quarters.
“We have binding bid for selling our entire 48% stake in IDBI Federal Life and we aim to wrap up the process by September quarter,” Sharma further said.
IDBI Bank on Tuesday reported widening of its standalone net loss to ?5,763.04 crore for the third quarter ended December as bad loans remained at an elevated level.
The lender had posted a net loss of ?4,185.48 crore during the corresponding October-December period of the previous fiscal year.
Total income during the three months to December 2019, however, grew to ?6,215.60 crore from ?6,190.94 crore in the year-ago period, IDBI Bank said in a regulatory filing.
The LIC-promoted bank continued to witness high proportion of bad loans, with gross non-performing assets (NPAs) at 28.72 per cent of the gross advances at end of December 2019, little lower than 29.67 per cent in the corresponding period of the previous fiscal.
Provisions for bad loans were cut significantly to ?440 crore from ?5,074.80 crore in the December quarter of 2018-19.
Likewise, the overall provisions and contingencies too reduced to ?521.95 crore from ?6,530.73 crore.
on Tuesday, stock of the bank closed at ?37 on BSE, up 2.07% from its previous close.
News Source: livemint