IDFC First Bank posts net loss of Rs 1,538 cr in Dec quarter
Private sector lender IDFC First Bank Tuesday reported a net loss of Rs 1,538 crore during the December 2018 quarter, due to one-time exceptional charge to its profit and loss account (P&L) for amalgamating Capital First with itself.
The bank had registered a net profit of Rs 146.11 crore in the corresponding quarter of previous fiscal.
Sequentially, there was a net loss of Rs 369.69 crore in the second quarter ended September of the current fiscal.
Total income of IDFC First Bank, previously IDFC Bank, rose to Rs 3,968.40 crore in December quarter of 2018-19, compared with Rs 2,514.51 crore in the corresponding period of 2017-18, it said in a regulatory filing.
Under Section 15 of the Banking Regulation Act 1949, banks are restricted from declaring dividend in the event a bank carries intangible assets such as goodwill on its balance sheet, IDFC First Bank said.
"Therefore, as a prudent measure, intangible assets acquired or arising on amalgamation have been fully amortised through profit and loss account in the quarter and nine months ended December 31, 2018.
"This accelerated amortisation charge to profit and loss account for the quarter and nine months ended December 31, 2018 of Rs 2,599.35 crore is exceptional in nature and resulted in loss for the quarter ended December 31, 2018," the bank said.
On the asset front, there was a reduction in bad assets with gross non-performing assets (NPAs) coming down to 1.97 per cent of the gross advances as at the end of December 2018, from 5.62 per cent as against a year ago. In value terms, gross NPAs were Rs 1,670.85 crore, down from Rs 2,776.67 crore.
Net NPAs were 0.95 per cent (Rs 796.02 crore), against 2.52 per cent (Rs 1,206.28 crore).
The bank said merger of Capital First and its wholly owned subsidiaries, Capital First Home Finance and Capital First Securities, with IDFC Bank has been approved by the Reserve Bank of India, the Competition Commission of India, the Securities and Exchange Board of India, stock exchanges, the respective shareholders and creditors of each entities.
The name of IDFC Bank changed to IDFC First Bank with effect from January 12.
Shares of the bank closed at Rs 42.80 apiece on the BSE, down 1.38 per cent from the previous close.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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