IDBI Bank Q1 net up 78.3% on tax credit

The bank's gross non-performing assets increase to 11.9%

Public sector lender IDBI Bank's net profit rose 78.3 per cent to Rs 241.1 crore for the quarter ended June, on the back of tax credits. The bank had posted a net profit of Rs 135.2 crore in the corresponding quarter last year.

Its stock was trading at 2.25 per cent up at Rs 68 a share on the BSE.

Its net interest income (NII) rose 14.2 per cent to Rs 1,707 crore, from Rs 1,495 crore in the June quarter of FY16.

The bank booked tax credit of Rs 1,206 crore, as against a tax out go of Rs 124.3 crore.

Its provisions for bad loans and contingencies rose more than twofold to Rs 2,432 crore, from Rs 878 crore in the corresponding period last year.

Gross non-performing assets (NPAs) grew to Rs 27,275 crore (11.9 per cent of the total loans) in June 2016, up from Rs 14,112 crore (6.6 per cent) a year ago. The provision coverage ratio including technical write-offs stood at 56.1 per cent at the end of the first quarter.

Its capital adequacy stood at 11.80 per cent, compared with 11.74 per cent a year ago.