IDBI Bank on Wednesday reported a net profit of R120 crore in the September quarter of FY16, a growth of a mere 1.69% from the same period last year. Total provisions stood at R1,289 crore, up 30% y-o-y. The bank’s total income stood at R7,914 crore in Q2FY16, up 4% y-o-y. Gross NPA ratio was up 28 bps to 6.92% at the end of the September quarter.
Kishor Kharat, MD & CEO, IDBI Bank said while certain accounts slipped in the quarter, the rate of growth of incremental slippages or the incremental NPAs actually came down from March through September. “Accounts that we were trying to save all these days were getting saved or were on the brink of becoming NPAs, but this quarter they have slipped and, therefore, the provisioning has increased,” he added.
The bank said it has plans to raise $500 million in green bonds by March 2016 and if the response is good, it could try another $500 crore in FY17.
Net interest income was up 15% to R1,612 crore from the same period last year and capital adequacy ratio under Basel III at the end of Q2FY16 was 11.66%. Loan book grew 5% y-o-y to R2.04 lakh crore in the quarter and deposits stood at R2.39 lakh crore.