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