IDBI Bank net jumps 34% to Rs 335-cr

Mumbai: The youngest public sector lender IDBI Bank today reported a 34 percent spike in net income to Rs 335 crore for the quarter to June driven by a rise in interest income and interest margin, despite advances growing at slower pace of 15 percent quarter on quarter.

During the corresponding quarter last fiscal, the city-based lender had reported a net profit of Rs 251 crore, the bank said in release. Net interest income (NII) jumped by a higher 36 percent to Rs 1,152 crore from Rs 844 crore q-o-q, while net interest margin (NIM) which is the key gauge of a bank's profitability and is the difference between the interest income a bank earns on its advances and the interest it pays on its deposits, increased to 2.07 percent during the quarter under review, which was 1.61 percent in the same period last fiscal.

Advances grew at moderate 15 percent during the quarter to Rs 1,54,984 crore against Rs 1,35,329 crore q-o-q, while deposits rose 12 percent to Rs 1,76,282 crore, against Rs 1,57,204 crore q-o-q.

Total assets of the bank grew 11 percent to Rs 2,49,571 crore up from Rs 2,24,658 crore and overall business rose 13 percent to Rs 3,31,266 crore, up from Rs 2,92,533 crore.

Following the recent RBI guidelines on higher provisioning for non-performing assets and standard restructured advances, the bank made an additional provisioning of Rs 279.60 crore during the quarter.

The bank's capital adequacy ratio or CAR stood at 13.83 percent while the core or tier-I capital stood at 8.11 percent at the end of the quarter.

Source: Financial Express