IDBI Bank net profit dips 6.5%

Public sector lender IDBI Bank on Wednesday reported a 6.5 per cent drop in net profit at Rs 518 crore for the quarter ended March 31, on higher provisions for stressed assets.

Net profit stood at Rs 554.45 crore in the fourth quarter of FY13. Total income increased to Rs 7,867 crore for the quarter-ended March from Rs 7,544 crore in the corresponding period of the previous financial year.

The provision for non-performing assets and write-offs rose to Rs 1,103 crore in the fourth quarter. For the full year ended March, the bank's net profit dipped 40 per cent to Rs 1,121 crore from Rs 1,882 crore in the previous financial year. Total income increased to Rs 28,284 crore for the entire year ended March 31, 2014, from Rs 19,359 crore in the previous financial year.

The IDBI Bank scrip closed at Rs 68.20 a unit on Wednesday, up 0.2 per cent on the BSE.

Deposits increased four per cent to Rs 2,35,774 crore at the end of March, 2014, from Rs 2,27,116 crore at the end March, 2013. The share of low cost deposits - Current Account and Savings Account (Casa) - improved to 25.12 per cent at the end of March, 2014, from 22.63 per cent in the year-ago period.

Advances showed flat growth at Rs 1,97,686 crore at the end of March, 2014, as compared with Rs 1,96,306 crore at the end of March, 2013. The lender's gross non-performing assets stood at 4.9 per cent. Its capital adequacy ratio was 11.68 per cent under Basel-III norms.