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IDBI Bank reported a marginal dip in net profit at ₹103 crore in the third quarter ended December 31, 2014, as against ₹104 crore in the year-ago period. Write-back in provision towards non-performing assets (NPAs) and profit on sale of investments propped up profitability in the reporting quarter.
The public sector bank’s net interest income (the difference between interest earned and expended) was down 4 per cent at ₹1,431 crore (₹1,488 crore in the year-ago quarter).
However, non-interest income saw a 46 per cent jump at ₹777 crore (₹532 crore).
As at December-end 2014, the bank’s net interest margin (net interest income/total assets) declined to 1.85 per cent (2.18 per cent as at December-end 2013).
Bad loans riseDuring the quarter, the bank saw an accretion of ₹1,601 crore (₹1,093 crore in the preceding quarter) to its bad loans portfolio.
After accounting for upgradation, recoveries and write-offs, gross non-performing assets stood at ₹12,140 crore (₹11,559 crore in the September 2014 quarter).
The bank received a write-back in NPA provision of ₹35 crore (against a provision of ₹590 crore in the year-ago period). Year-on-year deposits increased by 20 per cent to ₹2,33,199 crore and advances were up by 11 per cent at ₹1,97,303 crore. Shares of IDBI Bank closed at ₹65.80 apiece, up 0.23 per cent over the previous close on the BSE.
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