IDBI Bank’s Q2 profit falls 38% to Rs118 cr as provisions rise
Provisions for bad loans increased 13% to `990 crore from `878 crore a year ago mainly because the bank reported an increase in gross non performing assets
Mumbai: IDBI Bank Ltd’s profit dropped 38% to ₹ 118 crore in the July-September quarter, from ₹ 192 crore a year ago as the bank increased provisions for bad loans and made less money from its core lending business.
Provisions for bad loans increased 13% to ₹ 990 crore from ₹ 878 crore a year ago mainly because the bank reported an increase in gross non performing assets (NPAs).
Gross NPAs increased to 5.72% in September 2014 from 4.98% in September 2013, while net NPAs were stable at 2.79% compared with 2.82% a year ago.
Net interest income, or the difference between interest earned on loans and that paid on deposits, dropped 5% to ₹ 1,406 crore during the quarter from ₹ 1,483 crore last year.
Other income rose 31% to ₹ 760 crore from ₹ 579 crore a year ago.
Shares of IDBI Bank rose 3.37% to ₹ 70.55 apiece, while India’s benchmark Sensex index advanced 1.90% to 27,865.83 points.
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