IDBI Bank: IDBI Bank stock down 7.5% as it reported historic loss of Rs 3200 cr in Q4

MUMBAI: IDBI Bank’s stock fell 7.5% soon after the bank announced a historic loss of Rs 3200 crore in four quarter against Rs 2250 crore posted in third quarter.

The higher loss are on the bank of huge provisions for the bad loans which stood at 21%. The shares later recovered, but were still down 6.8% and traded at Rs 70.7 a share at the Company Stock Exchange.

The Reserve Bank has already initiated prompt corrective action (PCA) on the bank as it has posted losses for two consecutive years, reported higher level of bad loans and breaching the minimum capital norms. PCA restricts banks from hiring, opening branches and giving big ticket loans.

The bank has posted loss of Rs 5069 crore for full year ending March 2017 versus Rs 3623 crore a year ago. The bank’s CETI stood at 5.64% against the minimum requirement of 6.75%. The overall capital adequacy ratio stood at 10.70%.

Source