IDBI Bank to set off accumulated losses

The board of IDBI Bank Ltd. approved a proposal to set off its accumulated losses by April 1.

Subject to shareholders' approval, the bank will set off losses in full or to such an extent as may be possible by utilizing the balance standing to the credit of the securities premium account as of April 1, according to a Feb. 12 bourse filing.

The Indian lender said the losses have wiped off the value represented by the share capital, and it is not eligible to make coupon payment of additional Tier 1 bonds.

It believes reducing the share capital is the most practical and economically efficient option to present a true and fair view of its financial standing.