Industrial Development Bank of India (IDBI) has posted a net profit of Rs 153 crore for the first quarter (April-June period) of the current financial year, a rise of 1.32 per cent over Rs 151 crore in the corresponding period last year. | |
| The slow growth was on account of rise in cost of funds and higher provisioning for bad loans and investments. |
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The total income for the quarter ended June 30, 2007, rose by 31 per cent to Rs 2,193 crore. "The cost of funds (deposits plus market borrowings) has gone up substantially "� by 109 basis points "� to 7.75 per cent in the last 12 months. This has dented the net interest income," IDBI's chief financial officer L P Agarwal said.
| SLOW PACE | | Rs crore | Q1 FY08 | Y-o-Y
% chg | | Business | 1,06,539 | 30 ^ | | Operating profit | 257 | 33.9 ^ | | Net profit | 153 | 1.3 ^ | | Deposits | 46,757 | 61 ^ | | Advances | 59,772 | 14 ^ | | Total assets | 1,05,147 | 17 ^ |
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| The returns on earning advances has moved up to 9.15 per cent by the end of June 2007, from 7.90 per cent a year ago. |
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| The deposits rose by 61 per cent to Rs 46,757 crore, while advances rose to Rs 59,772 crore in last 12 months. However, compared with the previous quarter, advances showed a fall of Rs 2,699 crore. |
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| Agarwal said that the bank would review (upward) the business targets for 2007-08 from the estimated 15-20 per cent credit growth. |
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| The bank's provisions for non-performing assets (NPA) and investments rose 2.5 times to Rs 104 crore against Rs 41 crore in the first quarter of 2006-07. |
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| The net NPAs rose to 1.15 per cent from 1.02 per cent a year ago, while capital adequacy stands at 14.38 per cent against 14.00 per cent last year. |
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