IDBI Bank shares plunged as much as 9 per cent on Thursday after the state-owned bank said that more than one fifth of its advanced turned bad in the March quarter. IDBI Bank, which reported its earnings for the January-March quarter on Thursday, said its gross non-performing assets (GNPA) as a percentage of total advances increased to 21.25 per cent compared to 15.16 per cent in the December quarter. On an absolute basis, gross non-performing assets of IDBI Bank surged 27 per cent sequentially to Rs. 44,753 crore.
Meanwhile, net non-performing assets (GNPA minus provisions) as a percentage of total advances of IDBI Bank increased to 13.21 per cent compared to 9.61 per cent in the December quarter.
The public sector lender's net loss increased 84 per cent annually to Rs. 3,200 crore as compared to Rs. 1,736 crore in the corresponding quarter of last year as provisions soared nearly 40 per cent to Rs. 6,210 crore.
The Reserve Bank of India recently initiated "prompt corrective action" on IDBI, which the lender said was due to high bad loans and negative return on assets.
IDBI Bank shares have fallen over 13 per cent in last three months compared to 12 per cent gain in the banking sub-index, Nifty Bank. IDBI Bank shares ended 7.9 per cent lower at Rs. 69.95 compared to 1.03 per cent decline in the Nifty Bank
Meanwhile, net non-performing assets (GNPA minus provisions) as a percentage of total advances of IDBI Bank increased to 13.21 per cent compared to 9.61 per cent in the December quarter.
The public sector lender's net loss increased 84 per cent annually to Rs. 3,200 crore as compared to Rs. 1,736 crore in the corresponding quarter of last year as provisions soared nearly 40 per cent to Rs. 6,210 crore.
The Reserve Bank of India recently initiated "prompt corrective action" on IDBI, which the lender said was due to high bad loans and negative return on assets.
IDBI Bank shares have fallen over 13 per cent in last three months compared to 12 per cent gain in the banking sub-index, Nifty Bank. IDBI Bank shares ended 7.9 per cent lower at Rs. 69.95 compared to 1.03 per cent decline in the Nifty Bank
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