IDFC First bank on Wednesday reported loss of ₹1639 crore at the end of December quarter on account of higher provisioning towards stressed telecom account. The bank had reported a lost of ₹2504 crore during the same period last year.
"The Bank has a legacy exposure of Rs. 3,244 crores to this identified telecom company as of 31st December 2019, of which Rs. 2,000 crores is in the form of non-convertible debentures and Rs. 1,244 crores is in the form of non-funded exposure (Bank Guarantees) for spectrum.
There has been no payment default so far from this telecom company. However, considering the financial stress in the telecom companies related to payments due to the government, the bank has taken provisioning of 50% of total exposure towards this identified telecom company which is in financial stress, during the quarter ended on December 31,2019," said the bank in its press release.
The bank"s net interest income grew 34% year on year to ₹1534 crore, up from ₹1145 crore during the same period last year. Net interest margins improved to 3.86% at the end of December quarter from 2.89% during the same period last year..
Gross non performing assets as a percentage of total assets stood at 2.83% at the end of December 2019 compared to 2.62% during the same period last year.
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