IDBI Bank profit rises 5% in fourth quarter

Our Bureau Updated - December 07, 2021 at 02:34 AM.

Higher provisioning for slippages limits growth

Public sector lender IDBI Bank’s net profit for the fourth quarter ended March 2015 rose 5 per cent to ₹546 crore, limited by subdued growth in interest income and higher provision for slippages.

It had posted a net profit of ₹518 crore in the fourth quarter of FY14.

Sequentially, the profit has jumped more than five-fold, from ₹103 crore in Q3 FY15.

Net interest income, the difference between interest expended over interest earned, rose to ₹1,660 crore as compared with ₹1,575 crore in Q4 FY14. The other income (including income from fees and sale of investments) jumped 71 per cent to ₹1,970 crore in the fourth quarter of FY15 from ₹1,150 crore in the year-ago period.

The bank’s provisions towards non-performing loans rose 43 per cent to ₹1,717 crore up from ₹1,198 crore in the year-ago period.

NPAs move up

The bank’s gross non-performing assets (GNPA) as a percentage of total advances deteriorated to 5.88 per cent from 4.90 per cent a year ago.

Sequentially, however, the GNPA improved from 5.94 per cent.

Similarly, net NPA increased to 2.88 per cent as on March-end 2015 from 2.48 per cent as on March-end last year but fell from 3.05 per cent in the December quarter.

For the full year FY15, net profit declined 21 per cent to ₹873 crore from ₹1,121 crore in FY14.

The IDBI Bank board recommended a dividend of ₹0.75 a share for 2014-15.

The shares of IDBI Bank ended 5.8 per cent higher at ₹70.65 apiece on the BSE on Wednesday.

Published on May 27, 2015 17:07