MUMBAI: IDBI Bank Ltd on Wednesday said its first quarter net loss widened on the back of higher provisioning and lower net interest income.
The bank posted a net loss ?3800.84 crore for the three months ended 30 June compared to a loss of ?2409.89 crore in the year-ago period.
Provisions during the quarter increased 20.93% to ?6332.05 crore as against ?5235.96 crore in the year-ago quarter. In the Jan-Mar quarter, the bank had set aside ?8532.78 crore in provisions.
Net interest income, or the difference between interest earned on loans and that paid on deposits, decreased 11.04% to ?1457.73 crore from ?1638.62 crore in the corresponding period last year.
Other income, which includes core fee income, rose 29.55% to ?832.83 crore in the three months from ?642.84 crore a year ago.
Gross non-performing assets (NPAs), as a percentage of total advances, were at 29.12% in the June quarter compared with 27.47% in the March quarter and 30.78% in the year-ago June quarter.
Post-provision, the net NPA ratio was at 8.02% against 10.11% in the Jan-Mar quarter and 18.76% in the year-ago quarter.
On Wednesday, shares of the bank gained 2.05% to close at ?27.35 apiece, while the benchmark Sensex index gained 0.96% to close at 37,311.53 points.
News Source: livemint