IDBI Bank reports Rs 24-bn loss, NPAs increased to 31% in June quarter

Amid higher non-performing asset provisioning in Q1, the bank posted a loss of Rs 24.1 billion

While the LIC deal is a lifesaver for IDBI Bank, its financial position — as reflected in the April-June quarter (of FY19) result — is weak and recovery is an uphill task. Amid higher non-performing asset (NPA or bad loan) provisioning in Q1, the bank posted a loss of  Rs 24.1 billion. 

Unlike many other public-sector banks, which witnessed an improvement in gross NPAs (GNPAs) in Q1 on a sequential basis, IDBI Bank’s gross NPAs increased by 4 per cent, sequentially, and 15.2 per cent year-on-year to  Rs 578.1 billion, and its net NPAs stood at  Rs 300 billion. It