IDBI Bank’s bottom line turns red

IDBI Bank has declared its Q4FY16 results after Friday’s trading session. The bank’s interest earned has increased by 2.14 per cent to Rs 6928 crore in Q4FY16 as compared to previous quarter. Its Operating Profit before provisions and contingencies has declined by 53.81 per cent to Rs 249 crore in Q4FY16 on a quarterly basis. IDBI Bank’s provisions and contingencies expense has increased by 19.54 per cent to Rs 4450 crore in Q4FY16 on a sequential basis. The bank has posted net loss of Rs 1736 crore in Q4FY16 against net loss of Rs 2184 crore in Q3FY16.

On the yearly front, IDBI Bank‘s top line has decreased by 0.39 per cent to Rs 28043 crore in FY16 as compared to previous financial year. The bank’s Operating Profit before provisions and contingencies has increased by 13.91 per cent to Rs 1960 crore in FY16 on a yearly basis. Its provisions and contingencies expense has increased more than double to Rs 10341 crore in FY16 as compared to previous fiscal. IDBI Bank has posted a net loss of Rs 3665 crore in FY16 against net profit of Rs 873 crore in FY15.

On asset quality front, IDBI Bank’s stressed assets have worsened in Q4FY16. The bank’s gross non-performing assets (NPA) stand at 10.98 per cent amounting to Rs 24876 crore as of FY16 against 5.88 per cent amounting to Rs 12685 crore as of FY15. It net NPA also stands at 6.78 per cent amounting to Rs 14643 crore as of FY16 ; while 2.88 per cent amounting to Rs 5993 crore as of FY15.

The share price of IDBI Bank has declined by 0.47 per cent on bourses; and closed at Rs 64.1 on an intraday basis.

IDBI Bank provides personalised banking and financial solutions to its clients in the retail and corporate banking arena through its network of branches and Automated Teller Machines (ATMs). The Bank operates through three segments: wholesale banking, retail banking and treasury services.