High NPAs pull down IDBI Q1 net growth

IDBI Bank could manage only a 4 per cent increase in net profit in the first quarter of the financial year...

IDBI Bank could manage only a 4 per cent increase in net profit in the first quarter of the financial year due to a rise in bad loans and fall in non-interest income. The bank posted its profit after tax at Rs 160 crore against Rs 153 crore in the corresponding quarter last year.

Gross non-performing assets (NPAs) for the first quarter stood at Rs 1,578 crore against Rs 1,294 crore last year. Non-Interest income, during the period, declined to Rs 322 crore from Rs 400 crore in last year, while interest income posted a marginal increase to Rs 2,418 crore from Rs 1,793 crore.

For the quarter, the bank’s total business (deposits and advances) stood at Rs 1,50,832 crore as against Rs 1,06,529 crore as of June 30, 2007, registering a growth of 42 per cent. Deposits increased by 56 per cent in the April-June quarter and stood at Rs 72,717 crore against Rs 46,757 crore last year. Advances also increased 31 per cent to Rs 78,115 crore compared to Rs 59,772 crore as at end-June, 2007.

IDBI Bank continued to maintain a sound capital base as indicated by its aapital adequacy ratio (CAR). As against the stipulated RBI norm of 9 per cent, the bank’s CAR stood at 12.02 per cent as of June 30, 2008.