IDBI Bank shares jump 20% after profitable quarter
Published On: Monday, June 1, 2020 | By: Team KnowMyStock
Shares of IDBI Bank hit 20 per cent upper circuit at Rs 24.35 per share on Monday after the bank reported a profit in the March quarter of FY20 after reporting losses for 13 straight quarters. The lender posted a profit of Rs 135 crore for the March quarter on account of recoveries from bad loans. It had posted a net loss of Rs 4,918 crore in the corresponding period of last year. Total income rose to Rs 6,925 crore as against Rs 6,616 in the fourth quarter of 2018-19. The Bank posted a profit before tax (PBT) of Rs 289.66 crore for March 2020 on healthy rise in net interest income and a sharp drop in provisions and contingencies. The bank had posted a loss before tax of Rs 7,136 90 crores in quarter ended March 2019 (Q4FY19).IDBI said net interest income (NII) improved by 46 per cent to Rs 2,356 crore for March quarter compared with Rs 1,609 crore last year same period. The bank made COVID-19-related provisions of Rs 247 crore during the quarter against standard assets.
The bank has made an additional provision of Rs 431.05 crore during Q4FY20, over and above the regulatory norms for certain borrower accounts due to the inherent risk and uncertainty of recovery in these identified accounts.
Source: Economic Times, Business Standard
Tags: Profit IDBI 13 quarters loss provision
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