IDBI Q3 net up mere 1.7% at Rs 417 cr

Provisions for Kingfisher, Deccan weigh on performance

IDBI Bank posted mere 1.7 rise net profit at Rs 417 crore in the third quarter ended December 2012 on rise in provision for stressed assets including Kingfisher airlines.

Its net profit for Q3 of 2011-12 was Rs 410 crore.

The total income in the quarter rose to Rs 7,070 crore from Rs 6,281 crore in October-December 2011.

The net interest income showed robust growth (33.3%) at Rs 1,413 crore.

The net interest margin (NIM) also improved to 2.3% in Q3 of Fy13 from 1.89% in Q3 of Fy12. The fee-based income registered 68% growth at Rs 605 crore in Q3, R K Bansal, executive director said.

Deposit grew by five% to Rs 1,86,623 crore. The advances increased by 10% to Rs 1,70,959 crore as at end December 2012.

The provisions and contingencies more than doubled to Rs 962.95 crore in quarter ended December 2012 from Rs 407 crore in Q3 of 2011-12.

Another IDBI Bank official said the additional provisioning for Vijay Mallya-controlled Kingfisher Air, which is already non-performing asset (NPA). Now, it has moved to a “doubtful” category from “substandard” asset in line with prudential norms. Bank also had to make provision for media company Deccan Chronicle Ltd.

Its gross NPA ratio was 3.67% as against 2.94% at end of December 2011.

Its stock was closed lower (by 0.9%) to Rs 113.35 on Bombay Stock Exchange (BSE).

Capital Adequacy Ratio stood at 14.19% (Tier I – 8.01%) up from 13.53% (Tier I - 7.54%).