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Chennai, Oct. 24

IDBI Bank continued to report flattish profits in the second quarter also. Net profits crawled up by a mere 4% to Rs.162 crore. The bank had reported identical numbers in the first quarter also.

The flat trend in profits came despite an impressive 53% growth in net interest income of Rs 229 crore. The bank suffered a hit in treasury operations since its other income dropped Rs 111 crore. This drop in other income came despite fee income showing improvement of over Rs.80 crore to Rs.196 crore.

Mr R K Bansal, CFO, IDBI Bank, explained that the fall in other income was due to profits in the equity market being lower as well as the higher base effect ( the capital gains in the equity market in the corresponding quarter of the previous fiscal were higher). He said that the net interest margin (NIM) had improved to 0.79 percent from 0.35 per cent in the preceding quarter.

The bank's CASA (current accounts and savings accounts) deposits currently constitute only 16 per cent of deposits, because of its legacy as a development institution. Mr.Bansal said that the aim would be to take the CASA to 20 per cent by the end of the fiscal.

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