IDBI Bank net jumps 34% to Rs 335-cr

The youngest public sector lender IDBI Bank today reported a 34% rise in net income to Rs 335 crore for the quarter to June period .

This was driven by a rise in interest income and interest margin, despite advances growing at slower pace of 15% as compared to the previous quarter.

During the corresponding quarter last fiscal, the city-based lender had reported a net profit of Rs 251 crore, the bank said in release.

Net interest income (NII) jumped by a higher 36% to Rs 1,152 crore from Rs 844 crore q-o-q.

Net interest margin (NIM), the difference between the interest income a bank earns on its advances and the interest it pays on its deposits, increased to 2.07% during the quarter under review, as against 1.61% in the same period last fiscal.

Advances grew at moderate 15% during the quarter to Rs 1,54,984 crore against Rs 1,35,329 crore in January-March of this year, while deposits rose 12%  to Rs 1,76,282 crore, against Rs 1,57,204 crore q-o-q.

Total assets of the bank grew 11% to Rs 2,49,571 crore and overall business rose 13% to Rs 3,31,266 crore during the quarter.

Following the recent RBI guidelines on higher provisioning for non-performing assets and standard restructured advances, the bank made an additional provisioning of Rs 279.60 crore during the quarter.

The bank's capital adequacy ratio or CAR stood at 13.83% while the core or tier-I capital stood at 8.11% at the end of the quarter.