IDBI Bank net profit drops 60% on higher bad loans, provisions

Higher bad loans and provisions dragged IDBI Bank’s net profit down by 60 per cent in the second quarter to Rs 192 crore from Rs 484 crore in the year-ago period.

Gross non-performing assets (NPAs) jumped to 4.98 per cent as of September-end, 2013, from 3.45 per cent in Q2FY’13. Net NPAs also rose to 2.82 per cent from 2.04 per cent, as per the BSE filing.

Provisioning of the public sector lender soared 78 per cent to Rs 879 crore from Rs 495 crore in the corresponding quarter last year.

However, net interest income, the difference between interest earned and expended, saw a 19 per cent increase at Rs 1,484 crore against Rs 1,249 crore in the same quarter last fiscal.

During the quarter, other income declined 15 per cent to Rs 579 crore compared with Rs 683 crore in Q2FY’13.

Year-on-year advances grew 10 per cent to Rs 1.84 lakh crore (Rs 1.66 lakh crore as on September 30, 2012), while total deposits increased 12 per cent to Rs 2.03 lakh crore (Rs 1.80 lakh crore).

The shares of IDBI Bank ended down by 3.1 per cent at Rs 65.60 per share on the BSE.

beena.parmar@thehindu.co.in

Source: thehindubusinessline