IDBI Bank posts Q3 net loss at Rs 2,18368 crore

UCO Bank on Saturday reported a net loss of Rs 1,497 crore in the October-December quarter of FY16 against a net profit Rs 303.59 crore in the corresponding quarter a year ago.

The bank posted a quarterly net loss of Rs 3342 crore, compared to Rs 124 crore quarter on quarter.

Most lenders have reported weak earnings for the third quarter after the Reserve Bank of India directed them to classify many accounts as non-performing that were identified by the regulator during an Asset Quality Review (AQR). The reported loss would have been higher if it wasn’t for a tax write back of Rs.1,118 crore taken during the quarter.

The capital adequacy ratio of Uco Bank under Basel III requirement fell to 10.54 per cent during the quarter against 12.12 per cent in the year-ago period.

The RBI’s directions followed Governor Raghuram Rajan’s call for a clean-up of bank balance sheets by March 2017.

“Keeping in view the fresh RBI norms of asset quality review, we have made additional provisioning of Rs 3,300 crore in the quarter, which includes prudential provisioning of Rs 1,247 crore”. The Government, which holds 80 per cent stake in the bank, has already infused Rs 2,200 crore in the lender.

The gross non-performing asset of the bank increased 64 per cent to Rs.38,934 crore which was 9.68 per cent of total loans.

Bank of Baroda said total income declined to Rs 11,726.95 crore in the quarter ended December 31, from Rs 11,808.34 crore in the year-ago period. The provision coverage ratio of the bank was at 52.7 per cent.