IDBI Bank Q1 Net Tanks 65% to Rs 106 Crore on PSL Provisions

In spite of a dip in provisions, IDBI Bank today reported a 65 per cent plunge in net profit for the quarter to June at Rs 106 crore as the state-run lender had to set aside provisions for its inability to meet priority sector lending (PSL) targets.. The city-based lender, which has been struggling to increase retail business, saw its interest income decline due to larger outstanding under RIDF (Rural Infrastructure Development Fund) and other PSL-linked deposits, which soared to Rs 18,435 crore during the quarter from Rs 8,260 crore a year ago, the bank said in a statement here.. Confounding its perils, the bank's asset quality worsened with the gross bad loans ratio jumping to 5.63 per cent at Rs 10,763.4 crore in the first quarter ended June 30 from 4.34 per cent or Rs 7,959.23 crore.. Net NPA ratio, too, jumped to 2.87 per cent, or Rs 5,291.65 crore, from 2.16 per cent at Rs 3,871.79 crore.. However, its provisions fell to Rs 776.16 crore from Rs 829.76 crore a year ago. Net interest income declined to Rs 1,251 crore in the April-June period from Rs 1,475 crore and non-interest income dropped to Rs 500 crore from Rs 717 crore.. Total business grew 9 per cent to Rs 3,94,924 crore in Q1, while deposits increased 15 per cent to Rs 2,10,343 crore.. Advances inched up 3 percent to Rs 1,84,581 crore, it said.. Total income declined to Rs 7,233 crore from Rs 7,445 crore a year ago, interest income was almost flat at Rs 6,733 crore even as expenses rose to Rs 6,304 crore from Rs 6,128 crore. Interest expenses rose to Rs 5,482 crore from Rs 5,253 crore, the statement added.. The bank's Basel III compliant capital adequacy ratio stood at 11.78 per cent.

IDBI Bank Q1 Net Tanks 65% to Rs 106 Crore on PSL Provisions

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