IDBI Bank Q1 net up 7.5%

Restructured Ratnagiri Power account hits bottom line.

Public sector IDBI Bank has reported a 7.56 per cent growth in net profit at Rs 171.83 crore for the first quarter ended June 2009 as against Rs 159.76 crore in the previous corresponding period due to a sharp rise in provisions for restructured loan accounts, especially that of Ratnagiri Power.

Total income for the reporting quarter rose to Rs 4,218.91 crore from Rs 2,756.15 crore last year, the bank said in a statement.
 

POWERLESS GROWTH Performance in Q1 ended June 30, 2009
(In Rs crore)	2008	2009	% change
Net profit	159	171	7.55
Total income	2,756	4,218	53.05
Net interest income	91	316	247.25
Fee income	152	252	65.79
Gross NPA	1,578	1,748	10.77
Non-tax provisions	560	392	-30.00
CAR (%)*	12.02	12.3	—
* June 2009 CAR based on Basel-II norms

Its net interest income (NII) jumped 249 per cent to Rs 316 crore as against Rs 91 crore. Its other income went up to Rs 755.61 crore from Rs 339.91 crore.

The bank has made a provision of Rs 560.32 crore, over its tax provision, in the quarter compared with Rs 36.91 crore in the previous comparable period and Rs 392.28 crore for the entire FY09.

The bank’s Chief Financial Officer R K Bansal said that bank had to provide for a decline in the present value of restructured accounts and Ratnagiri Power (erstwhile Dabhol Power) in the first quarter. He, however, did not disclose the amount being provided for the power company’s account. Other lenders to Ratnagiri Power, such as State Bank of India and Canara Bank, had made provisions in 2008-09 and treated these as non-performing assets in their books, pending completion of the restructuring process.

After restructuring, the power company’s account would be treated as standard assets in our books, Bansal said. The Mumbai-based public sector lender has reported a 42 per cent growth in total business (deposits plus advances) at Rs 213,509 crore at the end of June 2009 from Rs 150,832 crore a year-ago. Its deposit base saw a 59 per cent to Rs 115,554 crore.

Advances grew by 25 per cent to Rs 97,955 crore. Its aggregate assets were up 34 per cent at Rs 1,74,608 core from Rs 130,410 crore.

Reflecting the stress of industrial and economic slowdown, its gross non-performing assets (NPAs) rose to Rs 1,748.04 crore (1.77 per cent) from Rs 1,578.18 crore (1.98 per cent). At the end of March 2009, its gross NPAs were Rs 1,435.69 crore.

Its capital adequacy ratio stood at 12.30 per cent. The bank’s stock closed at Rs 99.90, up 5.60 per cent over its previous close on the Bombay Stock Exchange (BSE).