IDBI Bank Q3 results net loss widens

IDBI Bank on Tuesday said its loss widened to Rs 5,763.04 crore for the December quarter from Rs 4,185.48 crore in the year-ago period. The bank had repoted Rs 3,458.84 crore loss in the September quarter.

The lender, however, said it would have reported a profit of Rs 418 crore instead of a loss of Rs 5,763 crore, if continued under the old tax regime.

The LIC-owned lender made Rs 6,523 35 crore as provisions for taxes during the quarter, even provisions & contingencies stood mere at Rs 521.95 crore compared with Rs 6,530.75 crore in provisions in the year-ago period.

Gross non-performing assets (NPAs) for the quarter fell to 28.72 per cent from 29.43 per cent in September quarter and 29.67 per cent in the year-ago quarter.

In respect of RBI-referred NCLT accounts, the bank is holding provisions worth Rs 22,644.40 crore as on December 31, 2019.

The bank's Provision Coverage Ratio (PCR), including technical write-offs, stood higher at 92.41 per cent.

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IDBI Bank likely to be out of PCA framework in fourth quarter

LIC-controlled IDBI Bank expected to come out of the Prompt Corrective Action (PCA) framework in the last quarter of the current fiscal with the support of capital infusion and recovery from large IBC cases. According to sources, some of the restrictions with regard to lending by the bank have been eased recently.

With money coming from resolution on Essar Steel and expected flow from resolution of Bhushan Power and Steel and Alok Industries, sources said the bank is likely to be posting profit during the third quarter and the subsequent quarter.

The bank has already come below net NPA threshold of 6 per cent, one of the three parameters for triggering PCA framework. The net NPA of the bank reduced to below 6 per cent in the second quarter ended September 2019.

Recently, Parliament approved Rs 9,300 crore capital infusion in IDBI Bank. The department of financial services got an additional Rs 4,557 crore for infusion into IDBI Bank through recap bonds for their share of 47.11 per cent in IDBI Bank. State-owned LIC, which is the promoter of the debt-ridden lender with 51 per cent stake, will pump in an additional Rs 4,743 crore to improve the bank's capital position.

With this kind of capital infusion coupled with write back from the recoveries from large NPA cases, the bank is expected to come out from the weak bank watch list by the end of the current fiscal, sources said.

The PCA framework kicks in when banks breach any of the three key regulatory trigger points namely capital to risk weighted assets ratio, net non-performing assets (NPA) and return on assets (RoA).

Earlier this month, Finance Minister Nirmala Sitharam said the recapitalisation was done by the government by infusing Rs 21,157 crore into IDBI Bank since 2015 after we came back to power and LIC infused Rs 21,624 crore.

"So both put together have given Rs 42,781 crore to the bank. This has help reduce the net NPAs from a peak of 17.3 per cent in September, 2018 to 5.97 per cent in September, 2019. It has come below RBI's 6 per cent net NPA threshold level," she had said.

Earlier this year, the RBI removed five banks - Bank of India, Bank of Maharashtra, Oriental Bank of Commerce, Allahabad Bank and Corporation Bank - from the PCA framework in two phases after capital support from the government that resulted in improvement in their financial parameters.

The capital infusion helped these lenders meet requisite capital thresholds and reduced their net NPA levels to below 6 per cent.

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IDBI Bank Q2 net loss narrows; asset quality improves

IDBI Bank Ltd on Friday said its second quarter net loss narrowed to ₹3,459 crore on the back of higher net interest income and other income. The bank posted a net loss of ₹3,602.49 crore in the year-ago period.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 25.42% to ₹1,631.48 crore from ₹1,300.86 crore in the corresponding period last year.

Other income, which includes core fee income, gained 28.08% to ₹1,032.66 crore in the three months.

CASA deposit increased 15.49% to ₹1.04 trillion as on 30 September, against ₹90,071 crore for the same quarter last year.

Earlier this year, insurance behemoth Life Insurance Corporation of India (LIC) acquired 51% controlling stake in IDBI Bank, marking the entry of the more than 60-year old state-owned insurer into the banking space.

The bank said net interest margin (NIM) improved 53 basis points (bps) to 2.33% during the quarter.

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IDBI Bank Q1 loss widens, asset quality improves

IDBI Bank on Wednesday said its loss for the June quarter widened to Rs 3,801 crore from Rs 2.410 crore a year ago, along with a decline in interest income.

The lender said its net interest income was at Rs 1,458 crore for the first quarter of fiscal year 2020 as against Rs 1,639 crore last year. The banks’ net interest margin was at 2.13 per cent compared with 2.17 per cent.

IDBI Banks’ gross NPA ratio improved to 29.12 per cent as on June 30 against 30.78 per cent as on June 30, 2018.

Net NPA ratio improved to 8.02 per cent from against 18.76 per cent as on June 30, 2018 and 10.11 per cent as on March 31, 2019.

Net NPAs reduced to Rs 10,963 crore from Rs. 29,981 crore last year.

Provision Coverage Ratio (PCR-including technical write-offs) improved to 87.79 per cent from 64.45 per cent.

Recovery from technically write off accounts improved to Rs 79 crore in against Rs 69 crore. First Time NPAs reduced by 55 per cent from Rs 7,799 crore in Q1-2019 to Rs 3,486 crore.

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Public or private: Law ministry may help government on classifying IDBI bank

The government may seek the opinion of the law ministry on whether the now privatized IDBI Bank should be considered a state-run financial institution, or be treated on a par with private banks as classified by the Reserve Bank of India, a senior official said. 

The development comes after the Central Vigilance Commission, in response to a finance ministry query, said IDBI Bank will continue to come under the government’s vigilance oversight. Private banks do not fall under the ambit of the Vigilance Commission. 

IDBI, set up in 1964 under an Act of Parliament, is regarded as a public financial institution under the Companies Act, but the government has ceded its management control in the firm. Hence, the confusion. 

“We continue to consider it a state-run financial entity but may seek further clarity if needed,” a senior government official told ET. In reply to questions on public sector banks in both Houses, the government has clarified that data includes figures for IDBI Bank. 

The Union cabinet had, in August last year, approved acquisition of controlling stake in the bank by state-run insurer Life Insurance Corporation of India (LIC) as promoter, and bringing down the government’s stake in the firm to below 50%. It also gave its nod for relinquishing management control. 

The Reserve Bank reclassified IDBI Bank as a private sector lender for regulatory purposes in January, after LIC acquired a 51% stake in the bank by infusing around Rs 20,800 crore. The government now holds a 46.46% stake in the bank. 

“There is no doubt over management control but clarity on the issue may also help the government if there comes a situation to infuse capital in the bank either directly or through a rights issue,” an IDBI official said on condition of anonymity.

The lender has indicated that it requires around Rs 7,000 crore in the current fiscal itself to meet regulatory requirements and enhance its lending book. 

It had reported a loss of Rs 4,918 crore for the last quarter of FY19 and a loss of Rs 15,116 crore for the full year. 

The Insurance Regulatory and Development Authority of India (IRDAI) had earlier asked LIC to submit a roadmap to bring down its stake in the lender. As per existing laws, an insurer can hold only 15% equity stake in a listed entity.

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IDBI Bank narrows Q4 net loss on lower bad loan provisions

IDBI Bank, majority owned by Life Insurance Corporation of India (LIC), Thursday narrowed net loss to ₹4,918 crore in the quarter ended March due to lower provision for bad loans.

The bank had reported a net loss of ₹5,663 crore in the same period last year.

"Our losses have come down in the quarter as provisions for non-performing loans (NPAs) reduced," its managing director and chief executive Rakesh Sharma told reporters.

Provisions for non-performing loans declined to ₹7,233 crore in the quarter from ₹10,773 crore in the same period last year.

For the full year, lender reported a net loss of₹15,116 crore as against a net loss of ₹8,238 crore in FY18.

In January 2019, LIC completed acquisition of 51% controlling stake in the bank. The state-run life insurer infused ₹21,624 crore into the bank.

Net interest margin improved to 2.26% from 1.19%.

Gross non-performing assets ratio improved to 27.47% as against 27.95%, while net NPA was at 10.11 per cent as against 16.69%.

The bank, which under the Reserve Bank of India's (RBI) prompt corrective action (PCA), expects to bring down its net NPA ratio to below 9 per cent by June-end and below 6 per cent by September quarter.

Our target is to come out of PCA and become profitable. We expect by September or maximum by December quarter we will be out of PCA," Sharma said.

Total provision stood at ₹6,314 crore as against ₹8,026 crore.

Provision Coverage Ratio improved to 82.88 per cent as on March 31, 2019 from 63.40 per cent as on March 31, 2018.

Fresh slippages reduced to ₹1,781 crore from₹18,023 crore in the year-ago period.

Recovery in the quarter stood at ₹927 crore.

The bank has set a recovery target of ₹13,000 crore, including ₹2,000 crore from sale to asset reconstruction companies in the current financial year.

Sharma said the bank is looking to raise₹1,500 crore through sale of non core assets- IDBI Federal Life Insurance and IDBI Mutual Fund.

The bank is also looking at raise ₹2,500-3,000 crore through Tier 1 bonds and ₹6,500 crore from markets.

Its CASA increased to ₹96,730 crore as on March 31, 2019 as against ₹92,102 crore as on March 31, 2018.

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IDBI Bank Recruitment for 500 Assistant Manager Posts 2019

IDBI Bank (51% shares held by Life Insurance Corporation of India) invites online applications from eligible Indian citizens for the post of Assistant Manager. Candidates fulfilling required eligibility criteria may apply On-line through the link given in Bank's website. 

Posts: Assistant Manager

Total No. of Posts: 500

Educational Qualification: A Graduate from a recognized university with minimum 60% marks (55% for SC/ST/PWD)

Age Limit: (As on March 1, 2019): Minimum: 21 years Maximum: 28 years i.e. a candidate must have been born not earlier than 02.03.1991 and not later than 01.03.1998 (both dates inclusive) Relaxation in Upper age limit as per rules.

How to Apply: Interested Candidates may Apply Online Through official Website.

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Important Dates:

Starting Date of Online Application: 30-03-2019

Last Date to Apply Online & Fee Payment: 15-04-2019

Tentative Date of Online Test: May17,2019

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IDBI Bank Recruitment for 300 Executives Posts 2019

IDBI Bank (51% shares held by Life Insurance Corporation of India) invites online applications from eligible Indian citizens for the post of Executives. Candidates fulfilling required eligibility criteria may apply On-line through the link given in Bank's website. 

Posts: Executives

Total No. of Posts: 300

Educational Qualification: A Graduate from a recognized university with minimum 60% marks (55% for SC/ST/PWD)

Age Limit: Minimum: 20 Years Maximum : 25 years. The applicant must have been born not earlier than 02 March, 1994 and not later than 01 March, 1999 (both dates inclusive). Relaxation in Upper age limit as per rules.

How to Apply: Interested Candidates may Apply Online Through official Website.

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Apply Online: Click Here

Important Dates:

Starting Date of Online Application: 30-03-2019

Last Date to Apply Online & Fee Payment: 15-04-2019

Tentative Date of Online Test: May16,2019

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