SIDBI Q3 net up 34% at Rs 540.3 cr on sharp rise in interest income

Small Industries Development Bank of India (SIDBI) has posted 34 per cent increase in net profit at Rs 540.3 crore in the third quarter ended December 2018 (Q3Fy19) on sharp rise in interest income.

It had posted a net profit of Rs 403.18 crore in October-December 2017 (Q3Fy18).

Refinancing agency in statement said its Net Interest Income rose by 40.3 per cent to Rs 725.59 crore in Q3FY19 from Rs 517.15 crore in Q3FY18. However, its Net Interest Margin (NIM-annualised) went down by 64 basis points (Bps) to 1.86 per cent in December 2018 from 2.5 per cent in December 2017 due to focus on low risk assets and increased cost of funding.

The average yield declined to 5.3 per cent as on December 2018 from 5.6 per cent as on December 2017, SIDBI said.

The NIM was down by 19.41 per cent to Rs 137.99 crore in Q3FY19 from Rs 171.22 crore in Q3FY18.