IDBI bank Ltd on Saturday said that it has 68% of the total loan book under the three month moratorium and expects customers who had availed the moratorium to seek an extension, according to the bank’s managing director and chief executive officer Rakesh Sharma.
The management clarified that 97% of agriculture and micro, small and medium enterprises (MSME) borrowers by value opted for moratorium.
The bank had reported a net profit of ₹135.39 crore for the three months ended 31 March, the first after 13 quarters of losses. The bank had reported a loss of ₹4918.44 crore in the year-ago period. Increased recovery from resolution of bad assets saw the bank write back provisions worth ₹1511. 39 crore during the quarter.
Provisions during the quarter tripled to ₹15841.4 crore as against ₹521.95 crore in the previous quarter. The bank had set aside a provision of ₹8532.78 crore a year ago. The bank made COVID-19-related provisions worth ₹247 crore during the quarter.
Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 46% to ₹2356 crore from ₹1609 crore in the corresponding period last year.
The bank saw a loan growth of 5% year on year to ₹1.6 lakh crore and deposit book saw a 2% fall to ₹2.22 lakh crore.
Other income, which includes core fee income, rose 15% to ₹1326 crore in the three months ended 31 March from ₹1153 crore a year ago.
Gross non-performing assets (NPAs), as a percentage of total advances, were at 27.53% in the March quarter compared with 28.72% in the December quarter and 27.47% in the year-ago March quarter.
Post-provision, the net NPA ratio was at 4.19% against 5.25% in the October-December quarter and 10.11% in the year-ago quarter.
The bank’s capital adequacy ratio stood at 13.31% as on 31 March 2020 as compared to 11.58% a year ago.
“With the current capital we can look at growth rate of 10%. However we will have to see the next one or two quarters before we finalise capital raising plan,” said Sharma.
Shares of the bank closed 1.25% higher at ₹20.30 apiece on Friday, while the benchmark Sensex index gained 0.69% to close at 32,424.10 points
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