IDBI Bank has reported 28.1 per cent decline in net profit at Rs 306.95 crore for the first quarter ended June 30, 2014.
IDBI Bank on Thursday reported a 28 per cent decline in net profit for the first quarter ended June 30 at Rs 307 crore (Rs 427 crore).
The bottomline performance was largely pulled down by a sharp jump in provisioning for bad debts, which increased in the quarter under review to Rs 739 crore (Rs 377 crore).
Total income grew 9.6 per cent to Rs 7,445 crore (Rs 6,790 crore). The net profit was also bolstered by sharp increase in treasury gains to Rs 147 crore (Rs 16 crore)
“We experienced sizeable slippages this quarter. But we do not expect much of this strain to continue this year. I am confident that we will not only maintain last year’s bottomline performance, but will do better than that,” M. S. Raghavan, Chairman and Managing Director, IDBI Bank, told a press conference here.
The bank had recorded a net profit of Rs 1,882 crore for the financial year ended March 31, 2013. To support business growth, IDBI Bank has sought capital support of Rs 3,000 crore from the Government, Raghavan said.
Raghavan said that the bank was targeting a deposit growth of 12 per cent and credit growth of 12 per cent this fiscal. IDBI Bank is keen on improving its retail deposits and plans are afoot to add at least 300 new branches this fiscal.
This public sector lender’s Tier-I capital is slightly below 8 per cent.
Raghavan also said that the bank was yet to take a call on whether to reduce the base rate further or not. The base rate currently stands at 10.25 per cent.
srivats.kr@thehindu.co.in