IDBI Bank Q1 net rises 4 per cent

IDBI Bank today reported a 4 per cent rise in net profit to Rs 160 crore for the first quarter this year as against Rs 153 crore during the previous comparable period.

The total income for the reporting quarter rose 24.94 per cent to Rs 2,740 crore from Rs 2,193 crore in the first quarter of 2007-08. Interest income grew 34.85 per cent to Rs 2,418 crore during the quarter ended June 2008, compared to Rs 1,793 crore the first quarter last year.

Interest expenses too grew at around the same pace, rising 34.45 per cent to Rs 2,326 crore. The bank's net interest income was up by 31 per cent at Rs 92 crore.

While other banks are reporting a steep rise in provisions mainly for mark-to-market losses on their investment portfolio, IDBI Bank said that provisions and contingencies fell 76.81 per cent to Rs 19.88 crore during the first quarter of the current financial year, compared to Rs 85.73 crore during the corresponding period last year. It, however, reported a loss of Rs 34 crore on treasury operations, compared to a profit of Rs 85.73 crore. 
 

ON THE GROWTH PATH
Net profit to Rs 160 cr	^ 4%
Business to Rs 1,50,832 cr	^ 42%
Deposits to Rs. 72,717 cr	^ 56%
Advances to Rs. 78,115 cr	^ 31%
Total assets to Rs. 1,30,410 cr	^ 24%

The bank said that gross non-performing assets (NPAs) rose nearly 22 per cent to Rs 1,578 crore during the first quarter of 2008-09 from Rs 1,294 crore during April-June 2007.

Net NPAs, which factor in the provisions for bad and doubtful assets, however, went up nearly 44.53 per cent to Rs 1,071 crore at the end of June 2008, compared to Rs 741 crore at the end of June 2007.

"The increase in bad debt is not indicative of an increase in slippages. These are temporary NPAs as some clients have not paid the interest for a certain period," IDBI Bank chairman Yogesh Agarwal said, while pointing out that gross NPAs as a proportion of total advances declined to 1.98 per cent at the end of June 2008, compared to 2.06 per cent at the end of June 2007.