IDBI Bank tanks 9% as Q1 loss widens to Rs 3,801 cr on poor asset quality

Shares of IDBI Bank tumbled nearly 9 per cent on Friday after the company reported widening of loss to Rs 3,800.84 crore for the June quarter.

The scrip dropped 8.47 per cent to close at Rs 24.85 on the BSE. Intra-day, the stock tumbled 12.33 per cent to touch its 52-week low at Rs 23.80.

On the NSE, shares tanked 8.82 per cent to close at Rs 24.80.

The company's market capitalisation (m-cap) declined by Rs 1,779.31 crore to Rs 19,224.69 crore on the BSE.

On the traded volume front, 16.84 lakh shares were traded on the BSE and over 1.98 crore on the NSE.

IDBI Bank on Wednesday reported widening of loss to Rs 3,800.84 crore for the June quarter, hurt by higher provisioning for bad loans.

The bank had posted a loss of Rs 2,409.89 crore in the April-June quarter of 2018-19.

Its provisioning for non-performing assets (NPAs) or bad loans zoomed to Rs 7,009.49 crore during the first quarter of 2019-20, from Rs 4,602.55 crore in the year-ago period.

Total provisioning and contingencies during the quarter rose to Rs 6,332.05 crore from Rs 5,235.96 crore.

Total income of the bank for the quarter under review also declined to Rs 5,923.93 crore, as against Rs 6,402.50 crore a year ago, IDBI Bank said in a regulatory filing.