IDBI Q3 net increases 1.7% at Rs 417 cr

IDBI Bank posted a 1.7 per cent rise in net profit at Rs 417 crore in the third quarter ended December 2012. This is due to rise in provision for stressed assets, including Kingfisher Airlines.

The bank’s net profit for Q3 was Rs 410 crore.

The total income in the quarter rose to Rs 7,070 crore, from Rs 6,281 crore in October-December 2011.

The net interest income showed robust growth (33.3 per cent) at Rs 1,413 crore.

The net interest margin (NIM) also improved to 2.3 per cent in Q3 of FY13 from 1.89 per cent in Q3 of FY12. The fee-based income registered 68 per cent growth at Rs 605 crore in Q3, R K Bansal, executive director, said.

Deposits grew five per cent to Rs 1,86,623 crore. Advances increased by 10 per cent to Rs 1,70,959 crore as at end-December 2012. The provisions and contingencies more than doubled to Rs 962.95 crore in the quarter ended December 2012 from Rs 407 crore in Q3 of 2011-12.

Another IDBI Bank official said the additional provisioning was for Vijay Mallya-controlled Kingfisher Airlines, already a non-performing asset (NPA). It has moved to a “doubtful” category from “substandard”, in line with prudential norms. The bank also had to make provision for media company Deccan Chronicle Ltd. The gross NPA ratio was 3.67 per cent, against 2.94 per cent at the end of December 2011.

The bank’s stock closed lower (by 0.9 per cent) at Rs 113.35 on the Bombay Stock Exchange.

The capital adequacy ratio stood at 14.19 per cent (Tier I — 8.01 per cent), up from 13.53 per cent (Tier I — 7.54 per cent).

Govt to pump Rs 555 cr in IDBI Bank
The government will infuse equity capital of Rs 555 crore in the public sector lender IDBI Bank. The amount includes premium paid over the face value of Rs 10 per share. At present, the government holds about 70.52 per cent stake in the Mumbai-based bank.