IDBI Bank turns profitable after 13 straight quarters of loss; stock up 20%

The asset quality of bank, which is under Prompt Corrective Action (PCA), showed an improvement in slippage during the fourth quarter.

Shares of IDBI Bank hit 20 per cent upper circuit at Rs 24.35 apiece on the BSE on Monday after the bank reported profit in the March quarter of FY20 (Q4FY20) after reporting losses for 13 straight quarters. In comparison, the S&P BSE Sensex was at 33,299.02 level, up 874.92 points or 2.70 per cent.

The lender posted a profit before tax (PBT) of Rs 289.66 crore for the fourth quarter ended March 2020 on a healthy rise in net interest income and a sharp drop in provisions and contingencies. The bank had posted a loss before tax of Rs