IDFC First Bank reports loss of Rs. 854 crore in June quarter

The loss is due to slippage in a Mumbai-based toll road account. The bank reported a net loss of Rs. 630 crores in Q1 FY22.

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IDFC First Bank reported a loss of Rs. 854 crore in the June quarter due to slippage in a single large infrastructure account, the bank said in an official statement. The loss has, in turn, irked the investors, LiveMint reported.

The private bank’s gross bad loan rose to 4.61% from 4.15% in the previous quarter. The slippage in the Mumbai-based toll road account has increased the bad loan in the infrastructure segment by 15% from just 5.7% in the March quarter.

“This toll road account continued to repay its dues, partially, even during this quarter which was affected by second wave (Q1-FY22), the principal outstanding has come down by Rs. 19 crores during Q1 FY22. The Bank carries Rs. 154 crore provision on this account,” the bank said in the official statement.

“The slippage of this account led to an increase in GNPA by Rs. 854 crores. Bank expects to collect our dues in due course from this entity as this is an operating toll road entity and does not expect any material economic loss on this account” it further added.

IDFC First Bank saw a net loss of Rs. 630 crores in Q1 FY22 as compared to Rs. 94 crores in Q1 FY21. The bank created a COVID-19 provision of Rs. 350 crores during the June quarter, taking the total COVID-19 provision pool to Rs. 725 crores. It also reported a profit of 25% in net interest income.

 

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