Aggressive provisions drag IDBI Bank net NPAs to below 0.5% in June

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₹770 crore against NPAs at rates higher than those prescribed by Reserve Bank of India, "based on management assessment of the degree of impairment in various categories of advances". PCR denotes the percentage of bad loans for which a bank has set aside provisions. Rakesh Sharma, chief executive, IDBI Bank, told reporters on Monday that the bank has made additional provisions as a prudent measure, and it has been following this policy to build strong buffers.

"We are already at about 99% PCR and I don't see much room from here. The bank is also focussed on recoveries from bad loans as well as those that have been technically written off to clean the balance sheet," said Sharma. Meanwhile, IDBI Asset Management Ltd., IDBI MF Trustee Company Ltd., LIC Mutual Fund Asset Management Ltd.

and LIC Mutual Fund Trustee Pvt Ltd entered into an agreement on 29 December to transfer IDBI mutual fund schemes to LIC MF. The bank said that the Competition Commission of India (CCI) and Securities Exchange Board of India (Sebi) approval for the proposed transfer of AUM was received on 23 March and 3 April, respectively. "Notices to the unit holders giving an option to exit from the scheme were dispatched on 16 June.

The option was to be exercised from 20 June to 19 July. Data of exit option exercised is being compiled by registrar and share transfer agent and the process of transfer will be concluded upon compilation of necessary information and completion of required formalities," the bank said. IDBI Bank on Monday reported a net profit of ₹1,224 crore in Q1FY24, up 62% from the same period last year on the back of higher net interest income.