MUMBAI: IDBI Bank on Monday reported a higher net loss of Rs 4,185.48 crore on a huge jump in money set aside for potential loan losses, even though the overall asset quality has improved. The crippled lender had reported Rs 3,602 crore net losses on the previous quarter and a much lower Rs 1,524 losses in the year-ago period.
The state-run bank, now majority owned by life insurance behemoth LIC, is targeting to come out of the restrictive prompt corrective action (PCA) framework in another nine months, chief executive and managing director Rakesh Sharma said. Gearing up towards the net NPA requirement of 10 percent, the bank increased its provision coverage ratio by over 18 percentage points to 75 percent as at the end of the reporting quarter, which pushed down the net NPAs to 14.01 percent from 17.30 percent three months ago.
The board of IDBI Bank proposed change in the name of the lender to either LIC IDBI Bank or LIC Bank following its takeover by LIC. Last month, LIC completed the acquisition of 51 per cent controlling stake in IDBI Bank.
