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IDBI Bank's Q2 net largely flat at Rs 119.5 crore
State-owned lender posted a 27.7 percent rise in gross NPAs for the September quarter
Net profit for state-owned IDBI Bank remained mostly flat for the quarter ended September 30, earnings data released on Wednesday showed. The bank’s net profit for the fiscal second quarter stood at Rs 119.5 crore, compared with Rs 118.49 crore for the corresponding quarter a year earlier.
Net interest income, the difference between interest earned and interest expended, for the bank rose by 14.6 percent to Rs 1,611.8 crore from Rs 1,406.2 crore a year earlier.
In absolute terms, gross Non-performing assets (NPAs) were up 27.7 percent year-on-year to Rs 14,758 crore and net NPAs were up 19 percent year-on-year to Rs 6,476.8 crore, in the three-month period.
Shares of IDBI Bank edged down 0.12 percent to Rs 84.5 rupees in late afternoon trade on BSE, after the earnings were announced. It closed at Rs 84.8, up 0.24%.
Provisions for bad loans shot up 46.7 percent quarter-on-quarter and 30.2 percent year-on-year to Rs 1,289.3 crore.
In the September quarter, IDBI Bank signed the general refinance agreement (GRA) with Micro Units Development and Refinance Agency (MUDRA) in July this year. As per the agreement, IDBI Bank will offer credit facilities up to around ten lakh to micro enterprises.
The government has recently signalled its intention to reduce its stake in IDBI Bank from the existing 76.5 percent, but is yet to announce a clear game plan for the same.
