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Apr 23, 2012, 05.44 PM IST
IDBI Bank reported a 49.4% rise in fourth-quarter net profit, mainly helped by sharp fall in tax expenses. Net profit for the January-March period was higher at Rs 770 crore from Rs 516 crore a year earlier.
The bank's fourth-quarter net interest income rose 9.4% at Rs1211 crore versus Rs 1108 crore. Provisions, however came a tad lower at Rs 274 crore despite a rise in non-performing assets (NPAs).
RM Malla, CMD of IDBI Bank says, "We want to make absolutely sure that whatever RBI regulation is regarding provision we follow it later in spirit so we have made full provision wherever required. But if you see in isolation, you may find amount of provisioning less as compared to last quarter but it only means that is what is required so there are lesser NPAs. Essentially we have made full provisions and in spite of that it is basically because of our CASA moving up as a percentage of lower balance sheet of 20% to 24% as on March 31."
Talking about NPAs, he explained, "What becomes an NPA on December 31 you need to provide only 15%, so in that sense there were couple of big loans which became NPA during September-December quarter. We had a quantum jump in gross NPAs in that quarter. Provision required for those will be only 15%, so while gross has increased provision has not increased in the same ratio."
May 21 2013, 13:56
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