Mumbai-based public sector lender IDBI Bank today reported a net profit of Rs 554 crore for the quarter ended March, a decline of 28 per cent compared with a net profit of Rs 771 crore in the corresponding quarter last year. The fall in net profit was primarily due to a significant rise in provisioning towards non-performing and restructured assets.
For the year ended March, the bank's net profit stood at Rs 1,882 crore, against Rs 2,032 crore in 2011-12. In 2012-13, it set aside Rs 869 crore towards contingencies, compared with Rs 283 crore in 2011-12.
The rise in bank advances and deposits stood at 8.7 and 7.9 per cent, respectively. As of March 31, total advances stood at Rs 1,96,306 crore, while total deposits stood at Rs 2,27,116 crore.
On the slow loans and deposits growth, Executive Director R K Bansal said, "We wanted to consolidate and concentrate on our Casa (current account and savings account) and priority sector lending."
Net interest margin for the full year was 2.12 per cent, compared with 2.02 a year earlier.
As of March 31, IDBI Bank's gross non-performing assets (NPAs) stood at 3.22 per cent (down 3.67 per cent sequentially), while net NPAs stood at 1.58 per cent (down 1.93 per cent sequentially). The bank's total restructured assets stood at Rs 13,000 crore, with an incremental net addition of Rs 3,300 crore. Its provisioning coverage ratio was a healthy 70.83 per cent.
Capital adequacy ratio stood at 13.13 per cent as of March 31, with tier-I capital of 7.68 per cent. During the quarter ended March, the government infused Rs 555 crore into the bank. "We will decide on plans to shore up tier-I capital in the near future," Bansal said.