IDBI Bank on Thursday reported a 20% y-o-y rise in profits for the September quarter to R515.9 crore. The bank’s operating profit, however, came in at R1,006 crore, down by 1.6 % y-o-y.
The bank’s net interest income was R1,122 crore, down 3.9% from a year ago. The net interest margin narrowed sequentially by 7 basis points to 2%, owing to the higher cost of funds. Total income rose 24% y-o-y to R6,291 crore. The bank’s advances were up 20% y-o-y to R1,55,917 crore. IDBI Bank shares fell more than 2% to R104.8 on the BSE.
?By maintaining our net interest margin and providing less for NPAs, we have shown a satisfactory performance,? said executive director RK Bansal, IDBI Bank.
The bank’s gross NPAs rose from 2.10% to 2.47% q-o-q while net NPAs increased from 1.25% to 1.57% sequentially. Low cost CASA deposits made up 19.1% of total deposits for the lender, and were up by 181 bps sequentially.
The bank’s capital adequacy ratio (CAR) stood at 13.34% while deposits 13% y-o-y during the quarter.