Sharp rise in net interest income, helped IDBI Bank to post 46 per cent rise in its net profit for first quarter ended June at Rs 251 crore, as against 172 crore in the corresponding period last year.
Its total income for the April-June quarter rose to Rs 4,755.16 crore from Rs 4,218.91 crore last year. Its inet interest income (NII) recorded 171 per cent growth at Rs 851 crore over Rs 315 crore a year ago. Fee-based income grew by 53 per cent to Rs 385 crore as against Rs 252 crore.
Its deposits increased to Rs 1,57,204 crore stood at end of June from Rs 1,15,554 crore last year, showing growth of 36 per cent. Its advances also increased by 38 per cent to Rs 1,35,329 crore, as compared to Rs 97,972 crore a year ago. Its aggregate assets stood at Rs 2,24,657 crore from Rs 1,74,608 crore.
Its credit profile showed a strain as two restructured accounts turned non-performing assets (NPAs). Its gross NPAs grew by Rs 511 crore in three months ended June. Each of textiles and electronics industry accounted for NPAs of about Rs 300 crore, Chief Financial Officer P Sitaram said. Its gross NPAs rose to Rs 2,640 crore from Rs 1,748 crore a year ago.
| THE FACTSHEET PERFORMANCE ON Q1 ENDED JUNE | ||
| (Rs crore) | Jun ’10 | % Chg* |
| Interest earned | 4,288.98 | 23.90 |
| Other income | 466.18 | -38.50 |
| Total income | 4,755.16 | 12.70 |
| Interest expended | 3,437.80 | 9.20 |
| NII | 851.18 | 170.64 |
| Net profit | 250.89 | 46.00 |
| Source : Capitaline *Over previous year Data compiled by BS Research Bureau | ||
Its capital adequacy ratio (CAR) stood at 11.86 per cent (Tier-I 6.69 per cent) as of June 30. The government plans to infuse Rs 3,119.04 crore as equity capital on preferential basis. The bank would issue 259.5 million shares (of Rs 10 face value each) to government at premium of Rs 110.19 per share. Post capital infusion government stake would rise to 65 per cent. Asked about plans for issuing shares to other existing investors, Sitaram said: “The bank may not go in for any rights issue in the current financial year. There is no point in issuing extra shares at this point after government capital infusion.” IDBI Bank stock closed at Rs 122.25, down by 0.08 per cent over previous close on the Bombay Stock Exchange.