IDBI Bank net up 46 per cent in Q1 on back of interest income

A sharp rise in net interest income helped state-owned IDBI Bank to post a 46 per cent rise in its net profit for first quarter ended June at Rs251 crore, as against Rs172 crore in the corresponding period last year, chief financial officer P Sitaram said in Mumbai on Thursday.

Its total income for the April-June quarter rose to Rs4,755.16 crore from Rs4,218.91 crore last year. Its net interest income (NII) recorded 171 per cent growth at Rs851 crore over Rs315 crore a year ago. Fee-based income grew by 53 per cent to Rs385 crore as against Rs252 crore.

Its deposits increased to Rs1,57,204 crore stood at end of June from Rs1,15,554 crore last year, showing growth of 36 per cent. Its advances also increased by 38 per cent to Rs1,35,329 crore, as compared to Rs97,972 crore a year ago. Its aggregate assets stood at Rs2,24,657 crore, up from Rs 1,74,608 crore.

Its credit profile showed a strain as two restructured accounts turned into non-performing assets (NPAs). Its gross NPAs grew by Rs511 crore in three months ended June. Each of textiles and electronics industry accounted for NPAs of about Rs300 crore. Its gross NPAs rose to Rs2,640 crore from Rs1,748 crore a year ago.

Its capital adequacy ratio (CAR) stood at 11.86 per cent (Tier-I 6.69 per cent) as of 30 June. The government plans to infuse Rs3,119.04 crore as equity capital on preferential basis. The bank would issue 259.5 million shares (of Rs10 face value each) to government at premium of Rs110.19 per share. Post capital infusion government stake would rise to 65 per cent.

Asked about plans for issuing shares to other existing investors, Sitaram said, ''The bank may not go in for any rights issue in the current financial year. There is no point in issuing extra shares at this point after government capital infusion.''