On Wednesday IDBI Bank Posts Eighth Straight Quarterly Loss

November 14, 2018

IDBI Bank Ltd posted its eighth straight quarterly loss on Wednesday, as the state-run lender set aside more funds for bad loans.

Net loss was 36.02 billion rupees ($499.03 million) for the three months ended Sept. 30, compared with a loss of 1.98 billion rupees a year earlier.

This is the bank’s longest streak of quarterly losses since at least 2005.

Provisions for bad loans at IDBI Bank, which has the highest bad loan ratio in the sector, jumped 92.9 percent to 54.82 billion rupees, leading to a doubling in total provisions.

Gross bad loans as a percentage of total loans stood at 31.78 percent at end-September, compared with 30.78 percent at the end of the previous quarter and 24.98 percent a year earlier.

Last week, shareholders of the bank voted in favour of issuing new shares to state-run Life Insurance Corp as part of a planned takeover aimed at helping IDBI get capital to set aside for bad loans and grow its lending.
 

 

About nehanchal

I am Nehanchal. 3 years ago, I started my career as content writer at Money classic Research. I am fascinated with this job and I feel habit of reading and writing enhances your skills. I love to write technical and health blogs. However, I am engineer turned writer and pursued graduation at Rajiv Gandhi Prodyogiki Vishwavidhyalaya.
By: nehanchal

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