IDBI Bank net rises 62.13%

IDBI Bank today reported net profit of Rs 516.25 crore in the quarter ended March 31, a rise of 62.13 per cent compared with the net profit of Rs 318.41 crore in the year-ago period. The rise was was attributed to robust net interest income.

The bank's net interest income in the quarter stood at Rs 1109 crore, up 45.5 per cent from Rs 762 crore a year ago, said Chairman and Managing Director RM Malla, while announcing the results. Net interest margin during the quarter stood at 2.1 per cent, compared with 1.64 per cent reported in the year-ago period.

For the year ended March 31, 2011, IDBI Bank reported a 60 per cent rise in net profit at Rs 1,650.32 crore, against Rs 1,031.13 crore in the same period a year ago. “On a consolidated basis, the net profit stood at Rs 1,563.51 crore for the year ended March 31, 2011, compared with Rs 1,020.53 crore in the same period last year,” Malla said.

“The figures of the current period include the working results of two erstwhile wholly-owned subsidiaries of the bank — IDBI Home Finance and IDBI Gilts — from January 1, 2011 to March 31, 2011. Therefore, the figures of the previous year are not comparable,” he said. In 2010-11, the bank raised its advances by 13.6 per cent, while its deposits rose 7.64 per cent. “As a part of the strategy, the growth in deposits and advances was kept lower than the industry. We have concentrated on profitability. Going forward, we would grow our loan book by 15-18 per cent,” Malla said.

The bank's capital adequacy ratio stood at 13.64 per cent, while Tier-I capital adequacy ratio was 8.03 per cent. Last year, the bank received Rs 3119.04 crore from the government by subscribing preference shares. The bank plans to raise $1 billion through medium term notes (MTNs) in 2011-12. Banks like State Bank of India, Bank of India and Union Bank had recently raised funds by issuing MTNs.