IDBI Bank Q2 profit halves to Rs56 crore as NPAs nearly double
IDBI Bank’s total income increased to Rs8,387.20 crore during the second quarter, as against Rs7,913.64 crore in the year-ago period
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New Delhi: State-owned IDBI Bank on Tuesday posted a 53% decline in net profit to Rs55.52 crore for the second quarter ended 30 September 2016 as provision for bad loans increased. The bank reported a net profit of Rs119.5 crore during the same period last fiscal.
Total income of the bank increased to Rs8,387.20 crore during the quarter, as against Rs7,913.64 crore in the year-ago period, IDBI Bank said in a statement.
During the quarter, gross non-performing assets (NPAs) nearly doubled to 13.05% as against 6.92% in the same period of the previous fiscal. Net NPAs too moved up significantly to 8.32% from 3.16% in the year-ago period. As a result, provisions for bad loans surged to Rs920.48 crore from Rs666.03 crore a year ago.
For the half year ended September, the bank’s profit, however, rose by 17% to Rs296.62 crore as compared to Rs254.68 crore in the same period of 2015-16 fiscal. Total income also improved to Rs16,606.63 crore as against Rs15,817.01 crore in the corresponding period of last fiscal.
The bank’s capital adequacy ratio stood at 11.64% (as per Basel III) as of 30 September. PTI DP JM