| A provision of Rs 173.30 crore for non-performing assets (NPAs) restrained the year-on"�year growth in net profit in January-March 2006. |
| The bank's total income was up 13.75 per cent to Rs 1,944 crore as interest income increased by 16 per cent to Rs 1,574. |
| For the full year ended march 2006, the bank's net profit was Rs 561 crore. The figure for the previous year is not comparable as the year's accounts pertained only to a six-month period ended March 2005 following the merger with the erstwhile IDBI Bank. |
| V P Shetty, chairman, told reporters the net interest margin (NIM) and the yield on assets were down in 2005-06. NIM was down to 0.49 per cent from 0.81 per cent in 2004-05, while yield on assets fell to 7.84 per cent from 8.29 per cent. |
| The bank's NPAs fell sharply on account of aggressive recovery efforts. It recovered a total of Rs 1,738 crore in 2005-06 from NPA accounts, of which over 61 per cent (Rs 1,066 crore) was on account of cash recovery from fully written-off cases. |
| The bank's gross NPAs to gross advances ratio dipped to 2 per cent as on March 2006 from 2.5 per cent a year earlier. Its net NPAs dropped to 1.01 per cent from 1.74 per cent as on March 2005. |
| The bank's cost of funds in 2005-06 fell to 6.83 per cent from 7.35 per cent a year earlier through repayment of high cost legacy borrowings amounting to Rs 12,380 crore and replacing them with Rs 20,000 crore of lower cost deposits. Shetty said the deposits repaid during 2005-06 carried interest of 9-14 per cent and the lower cost funds raised carry interest of less than 9 per cent. |
| The bank's advances portfolio increased by just 16 per cent to Rs 52,518 crore in 2005-06 as it witnessed large amounts of repayments and advance payments of loans. The deposits base increased by 72 per cent to Rs 27,000 crore in 2005-06. |
| The bank's capital adequacy ratio was 14.80 per cent as on March 31, 2006. |
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