Mumbai: Helped by other income, mainly capital gains from sale of shares, Industrial Development Bank of India Ltd (IDBI) on Thursday reported a 38.7% rise in its third quarter net profit.
Its net profit for the October-December quarter stood at Rs176 crore, up from Rs127 crore in the year-ago quarter. Interest earned for the quarter was Rs2,077.24 crore against Rs1,697.35 crore a year ago. Net interest income for the quarter improved marginally to Rs213 crore against about Rs212 crore a year ago.
Its net non-performing assets ratio, or bad debt, fell to 1.19 from 1.55 in Q3 of the last fiscal. Deposits were up 51.3% to Rs56,889 crore and advances 13.2% to Rs68,443 crore.
The bank’s chief financial officer R.K Bansal said: “Earlier, as a development finance institution, we used to issue bonds to institutional investors. Now, we cannot issue those bonds as a bank. Whatever bonds are now coming for redemption, we are converting them as deposits... In absolute terms, both deposits and advances have grown by Rs6,000 crore each this quarter.”
Jyoti Khatri, an analyst with brokerage KR Choksey Shares and Securities Pvt. Ltd, said the bank’s net beat consensus estimates of Rs160 crore, but the net interest income growth was a disappointment. Shares of the company fell 4.27% on the Bombay Stock Exchange.