IDBI Bank Q2 net profit up 20% at Rs 516 cr

IDBI Bank has posted a 20.23 per cent increase in net profit at Rs 516 crore, for second quarter ended September, due to lower operating expenses and provision for bad loans.

Its net profit for the quarter stood at Rs 429.10 crore.While total income rose to Rs 6,291.4 crore in July-September, 2011, from Rs 5,069.3 crore same period in 2010. However, its net interest income was almost flat at Rs 1,122 crore for Q2 as against Rs 1,168 crore in the same period last year.

The net interest margin (NIM) was down two per cent from 2.24 per cent. NIM will remain under pressure in balance part of this financial year for slowdown and rise in bad loans, said its executive director R K Bansal.

Its operating expenses were down to Rs 594.6 crore from Rs 634.5 crore. The provisions and contingencies for the second quarter also declined to Rs 320.5 crore from Rs 441.5 crore.

Its deposits rose by 13 per cent to Rs 1, 74,441 crore at end- September 2011 from Rs 1, 54,305 crore a year ago. The share of low cost deposits – savings and current account – in total deposits improved to 19.1 per cent from 15.2 per cent a year ago.

Its advances rose by 20 per cent to Rs 1, 55,917 crore from Rs 1,30,213 crore as at end-September 2010. Its aggregate asset base rose 11 per cent to Rs 2,50,392 crore from Rs 2,24,889 crore a year ago.

Meanwhile, gross NPAs rose to 2.46 per cent (Rs 3,889.4 crore) from 1.88 per cent (Rs 2,471 crore) a year ago. The Bank’s Capital Adequacy ratio stood at 13.34 per cent as end of September 2011, down from 14.17 per cent a year ago. Its stock close 2.06 per cent down at Rs 104.80 on Bombay Stock Exchange.