Sumit Sharma/ Bloomberg
New Delhi: Industrial Development Bank of India Ltd (IDBI Ltd), the nation’s seventh-biggest by assets, said its net profit for the fourth quarter rose 6% on increased lending to companies and individuals.
India is witnessing a period of rapid credit growth—27.6% for the 12-month period ended 31 March, according to data provided by the Reserve Bank of India—as companies and individuals borrow more.
IDBI’s net profit rose to Rs213 crore for the three months ended 31 March from Rs201 crore a year earlier, the Mumbai-based state-owned bank said in a statement.
Interest and non-interest income rose 19% to Rs2,190 crore. The lender, which converted into a commercial bank in 2005 by merging with its banking subsidiary IDBI Bank, set aside Rs108 crore for bad loans in the three months to March, compared with Rs173 crore a year earlier.
For the year ended 31 March, IDBI recorded a net profit of Rs630 crore against Rs561 crore for the same period last year; the total income increased to Rs7,373 crore from Rs6,662 crore.
The group posted a net profit of Rs588 crore for the year ended 31 March against Rs544 crore for the same period last year. The total income increased to Rs7,517 crore from Rs6,815 crore in the same period last year. IDBI Bank declared a dividend of Rs1.50 per share.
PTI contributed to this story