India's IDBI Bank Ltd reported a loss of 56.63 billion rupees ($834.82 million) for the fourth quarter as the state-run lender booked higher provisions following stricter central bank rules on bad loans. Banks saw soured loans and provisions surge in the quarter after the central bank in February eliminated half a dozen loan restructuring schemes to hasten the clean-up of near-record levels of bad debt.
Most of the legacy issues on asset quality have been recognised, IDBI Bank CEO M K Jain said in a press conference after results, adding 97 billion rupees of loans slipped to non-performing assets due to RBI's latest circular. Provisions for bad loans surged 80 percent to 105.44 billion rupees, while that for non-performing assets rose 78 percent.
IDBI Bank's gross bad loans as a percentage of total loans stood at 27.95 percent at end-March, compared with 24.72 percent in the previous quarter and 21.25 percent a year ago. The quarterly loss, the sixth straight in a row, was deeper than the 32 billion rupees recorded in the same period last year, the bank said in a statement Most state-run banks that have reported quarterly earnings so far have posted losses.
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