State-run IDBI Bank today announced first quarter results in which it recorded a net loss of Rs 2,410 crore against Rs 853.01 crore in the same quarter of FY 2017-18. The bank's total provisioning for non performing assets more than doubled to Rs 5,236.07 crore during the April-June quarter of FY 2018-19.
The amount was Rs 2,035.96 crore in the year-ago period. The provision for bad loan alone was Rs 4,602.55 crore as against Rs 1,873.21 crore.
The Life Insurance Corporation is in the process of buying 51 per cent stake in the debt-stressed IDBI Bank. The Union Cabinet gave its approval to the proposal on August 1.
In a regulatory filing, IDBI Bank said that the total income of the lender for the quarter under review also declined to Rs 6,402.50 crore as against Rs 6,730.88 crore a year ago.
The bank's gross non-performing assets soared to Rs 57,806.84 crore in the April-June quarter of FY 2018-19 from Rs 50,173.20 crore in the year-ago period. Net NPA too increased to 18.76 per cent, up from 15.8 per cent in the year-ago quarter.
The bank has made preferential allotment of equity shares for Rs 7,881 crore to the Government of India against the fund infusion made on March 27, 2018.
Finance Minister Piyush Goyal had said the government has already made a capital infusion of about Rs 16,000 crore in IDBI Bank and LIC will be getting a "strong organisation which has capacity not only to service its debts but also strengthen and grow from here onwards".
After the transaction, IDBI Bank would become a subsidiary of LIC and the insurer would have 51 per cent stake. Currently, LIC holds 7.98 per cent stake in the debt-ridden public sector bank.
(With inputs from PTI)