IDBI Bank's board approves preferential issue of Rs 4,557 crore to government, Rs 4,743 crore to LIC
IDBI Bank rose 2.13% to Rs 33.50 after the bank reported net loss of Rs 3,458.84 crore in Q2 September 2019, lower than net loss of Rs 3,602.49 crore during Q2 September 2018.Total income rose 1.12% to Rs 6,231.02 crore in Q2 September 2019 over Q2 September 2018. The announcement was made after market hours on Friday, 8 November 2019.
The bank's gross non-performing assets (NPAs) stood at Rs 52,052.78 crore as on 30 September 2019 as against Rs 51,657.63 crore as on 30 June 2019 and Rs 60,875.49 crore as on 30 September 2018.
The ratio of gross NPAs to gross advances stood at 29.43% as on 30 September 2019 as against 29.12% as on 30 June 2019 and 31.78% as on 30 September 2018.
The ratio of net NPAs to net advances stood at 5.97% as on 30 September 2019 as against 8.02% as on 30 June 2019 and 17.30% as on 30 September 2018.
The bank's provisions and contingencies fell 14.26% to Rs 5,641.32 crore in Q2 September 2019 over Q2 September 2018.
Provision coverage ratio of the bank was at 91.25% as on 30 September 2019.
During Q2 September 2019, the bank has made additional provision of Rs 3424.58 crore over and above the IRAC norms in respect of certain borrower accounts in view of the inherent risk and uncertainty of recovery in these accounts.
The bank has also made additional provision of Rs 129.42 crore (100% of book value) over & above prudential norms for valuation of investments in certain listed equity scripts in view of significant erosion in their market values vis-vis their respective book values.
Further, the board of IDBI Bank on Friday, 8 November 2019, approved the proposal for sale of entire stake of IDBI Bank in IDBI Asset Management (IAML) and IDBI Mutual Fund Trustee Company (IMTL) and execution of share purchase agreement in this regard.
IDBI Bank offers monetary intermediation of commercial banks, saving banks, postal savings bank and discount houses. The bank provides personalized banking and financial solutions to its clients. Its segments include wholesale banking, retail banking and treasury services.
Government of India holds 47.11% stake in IDBI Bank as on 30 September 2019.
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