IDFC posts Rs 1,411 cr loss as bad loans mount

The lender reported gross NPA of Rs 1,467 crore at the end of Sept as compared to Rs 342 crore during the same period year ago

Infrastructure financier IDFC Ltd posted a net loss of Rs 1,411 crore for the quarter ended September as non-performing assets (NPA) rose. IDFC had posted a profit of Rs 440 crore during the same period of the last year.

The lender reported gross NPA of Rs 1,467 crore at the end of September as compared to Rs 342 crore during the same period year ago.

As a percentage of gross advances, gross NPA were at 3.17 per cent as compared to 0.62 per cent, a year ago. Net NPA, as percentage of net advances were at 1 per cent as on 30 September as compared to 0.42 per cent during the same period of last year.

According to a filing to the stock markets by the company, provisions and contingencies were at 262 crore during Q2 as compared to 281 crore in the second quarter of the previous financial year.

IDFC had received Reserve Bank of India's approval for to start banking operations last year. IDFC is now the holding company of the bank, which is IDFC Bank. The bank has commenced operations from 1 October, 2015.

In September, IDFC today got regulatory approval to utilize Rs 2,500 crore non-distributable reserves for provisions against bad loans as part of exercise to clean its book before venturing into universal banking.