IDBI Bank widens its losses in the third quarter.

IDBI Bank announced its Q3 numbers post trading hours yesterday, 11 February 2020.

Standalone net loss stood at Rs 5,763.04 crore in Q3 December 2019 (Q3 FY20) as against Rs 4,185.48 crore in Q3 December 2018 (Q3 FY19). On a standalone basis, total income rose 0.39% year-on-year (Y-o-Y) to Rs 6,215.60 crore in Q3 FY20.

During the quarter, the bank exercised the option of lower tax rate taking a one time hit of Rs 6,273 crore. Excluding the given impact, the bank would have reported net profit of Rs 418 crore against the net loss of Rs 5,763 crore being reported for the current quarter.

Standalone operating profit soared 76.19% to Rs 1,277.84 crore Y-o-Y. Standalone provision for taxation stood at Rs 6,518.93 crore as against a negative provision of Rs 1,620 crore during the period under review.

The bank's gross non-performing assets (NPAs) stood at Rs 49,502.68 crore as on 31 December 2019 as against Rs 52,052.78 crore as on 30 September 2019 and Rs 55,360.38 crore as on 31 December 2018.

The bank's provisions and contingencies (excluding tax provisions) tanked 92% to Rs 521.95 crore in Q3 December 2019 over Q3 December 2018.

Provision coverage ratio of the bank was at 92.41% as on 31 December 2019.

Net Interest Income (NII) for Q3 FY20 improved by 13% to Rs 1,532 crore. Net Interest Margin (NIM) improved by 39 bps to 2.27% for Q3 FY20 as compared to 1.88% for Q3 FY19. The Cost of Deposits improved by 51 bps to 5.02% for Q3 FY20 over 5.53% reported in Q3 FY19.

The Current Account-Savings Account (CASA) deposits has crossed Rs 1 trillion mark to stand at Rs 1,03,966 crore as on 31 December 2019 as against Rs 88,206 crore as on 31 December 2018, registering an increase of 18% Y-o-Y. The share of CASA in Total Deposits improved to 47.65% as on 31 December 2019 as against 38.36% as on 31 December 2018.

The Union Finance Minister, Nirmala Sitharaman while presenting the Union Budget FY 2020-21 in Parliament on Saturday, 1 February 2020 proposing the sale government stake in IDBI Bank to private investors.

IDBI Bank advanced 2.07% to end at Rs 37 on BSE on Tuesday, 11 February 2020.

IDBI Bank offers a wide range of products from savings and current bank account to loans for retail and MSME customers or Agri-loans to farmers.

The Government of India holds 47.11% stake in the IDBI Bank as on 31 December 2019.

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