IDBI Bank Q2 net up 4.1%

BS 200 SCORECARD

IDBI Bank's net profit in the quarter ended September 30, 2004, rose by 4.1 per cent to Rs 37.7 crore against Rs 36.2 crore. Total income was up 17.9 per cent to Rs 166.8 crore against Rs 141.1 crore.

The bank's trading fee declined to Rs 4.6 crore from 19.3 crore. It has made a provision of Rs 25.3 crore consequent to transfer of government securities. IDBI Bank has transferred government securities worth Rs 1,000 crore from the available for sale category to held to maturity. Core fee income of the bank increased by 22.1 per cent to Rs 56.4 crore against Rs 46.2 crore.

The bank has posted growth in profits despite a sharp fall in trading revenues, said IDBI Bank managing director GV Nageshwar Rao. We have focused on building core income streams for the bank, he added.

The RBI fresh guideline on increasing risk weight on housing loans will increase the capital requirements of banks. With merger on the anvil, capital will not be a constrain for the bank, said Rao.

Capital adequacy ratio stood at 10.1 per cent against 8.2 per cent in the corresponding quarter last fiscal. Its non performing assets (NPAs) stood at 0.1 per cent against 0.3 per cent in the corresponding quarter last fiscal.

Net interest margin of the bank in the current quarter stood at 3 per cent against 3.1 per cent. Net profit in the first six months of the current fiscal increased by 27.1 per cent to Rs 74.4 per cent compared to Rs 58.5 crore. Total income rose by 22.2 per cent to Rs 306.5 crore against Rs 250.8 crore.