Chennai: IDBI Bank, which was acquired by Life Insurance Corporation recently, has posted a steep rise in net loss to Rs 4,185.48 crore for the third quarter ended December 2018 as against a loss of Rs 1,524.31 crore in the corresponding quarter of the previous fiscal.

Reports have now stated that IDBI wants LIC’s name in the title of the firm as it looks at losses equalling to Rs 7,787 crore combining the last two quarters alone, which is equal to 65 per cent amount that LIC pumped into it.

Total income decreased to Rs 6,190.94 crore for the quarter, compared with Rs 7,125.20 crore in the corresponding quarter a year ago, IDBI Bank said in a statement.

The bank’s gross NPAs and the net NPA ratio improved to 29.67 per cent and 14.01 per cent, as against 31.78 per cent and 17.30 per cent respectively as of September 2018. In absolute numbers, gross NPAs declined from Rs 60,875 crore in the September quarter to Rs 55,360 crore in the December quarter.

However, on a year-on-year basis, NPAs went up from 24.72 per cent in the year-ago period. Net NPAs declined to 14.01 per cent of the total advances, from 16.02 per cent in the December 2017 quarter.

LIC had taken special permission from insurance regulator IRDAI to invest 51 per cent stake in IDBI Bank as the current rules allow only up to 15 per cent stake by an insurer in a listed company.

The final tranche of the equity shares of IDBI Bank were allotted to LIC at a price of Rs 60.73 per share (inclusive of a premium amount of Rs 50.73 per share) on 21 January. The loss of Rs 7,787 crore has come after the LIC injected money into the bank.

However, the bank said its gross non-performing assets (NPAs) declined on a quarter-on-quarter basis, recoveries improved and the bank has met the regulatory capital requirement following LIC’s capital infusion.