Government owned IDBI Bank has reported losses for the fifth consecutive quarter to Rs 1524 crore while one fourth of book has turned sour. The losses made by the bank were mainly due to higher provisions for bad loans IDBI Bank which received Rs 7632 crore capital from the government in the first nine months of this fiscal year is facing restrictions from the Reserve bank of India in undertaking business activities. In january, government announced it would issued recap bonds amounting to Rs 10,610 crore which will help them meet the 7.375% regulatory requirement on Common Equity Tier 1, which currently stands at 6.5% for IDBI Bank.The losses of the bank narrowed as it earned Rs 616 crore on sale of non core assets. Net interest margin stood at 2.16% against 0.86% a year ago. The share of low cost deposits stood at 36% against 28% a year ago.

Source: Economic Times January 31, 2018 13:52 UTC