IDBI Bank reports Rs 2,255 crore Q3 net loss

Provisions for bad loans jumped to Rs 2,357 cr from Rs 1,715 cr a year earlier

IDBI Bank Ltd reported its third-quarter net loss widened to Rs 2,,255 crore ($335 million) as provisions for bad loans surged.

The state-run bank, in which the government wants to cede majority control in a test case for reforms in the sector, had reported a net loss of Rs 2,184 crore for the year-ago quarter.

Provisions for bad loans jumped to Rs 2357 crore for the three months to December 31, 2016, from Rs 1,715 crore a year earlier. Gross bad loans as a percentage of total loans rose to 15.16 per cent as at end-December, from 13.05 per cent in September, and 8.94 per cent from a year earlier.

Shares in IDBI Bank were 2.3 per cent lower as of 9.22 am in a Mumbai market that was down 0.5 per cent.

United Bank of India, a smaller state-run lender which also reported third-quarter results on Tuesday, saw its net profit rising.