IDBI Bank has reported a 53 per cent jump in its net profit to Rs 18.22 crore for the first quarter ended June 30, against Rs 11.90 crore in the corresponding period of the previous year.
The bank has clocked a healthy growth in its bottomline even as it resorted to accelerated loan loss provisioning of Rs 16 crore.
Interest income showed a marginal drop to Rs 119.45 crore (Rs 125.24 crore in the previous year), but the other income rose sharply by 83.7 per cent to Rs 44.86 crore from Rs 24.42 crore the previous year.
"The thrust is to derisk the portfolio and move up the chain. This could also be the reason that there may not be an increase in the asset size," IDBI Bank's chief financial officer Vinit Kohli said.
There has been a dip in total expenditure to Rs 117.98 crore (Rs 120.30 crore). "We are cutting down on the consumption expenditure like premises cost, stationery cost, while investing on people and technology," managing director Gunit Chadha said.
The bank has provided for a loan loss provisioning of Rs 16 crore for the quarter compared to nil in the previous year.
"The provisioning is over and above the statutory requirements. We want to increase the cover on our assets to over 50 per cent by the fiscal-end from 36 per cent in March 2001," Kohli said.
The bank's retail deposits have grown by 61 per cent to Rs 871 crore. The bank, with a capital adequacy ratio of 11.79 per cent, has also scaled down its borrowing cost to 8.80 per cent from 9.19 per cent at the end of the last quarter. The scrip closed today at Rs 19 on the BSE, down by 1.55 per cent.
