MUMBAI : IDBI Bank reported a 66% on-year fall in its Apr-Jun net profit to 1.05 bln rupees, because of deterioration in asset quality and a steep decline in net interest income.
The bank’s net profit was 3.07 bln rupees a year ago. IDBI Bank’s gross non-performing assets ratio rose to 5.64% as on Jun 30 from 4.34% a year-ago and 4.90% in the quarter ended Mar 31.
The bank’s net NPA ratio was 2.87% as on Jun 30, up from 2.16% a year ago and 2.48% a quarter ago.
The bank’s deteriorating asset quality took a toll on the net interest income, which fell to 12.51 bln rupees from 14.75 bln rupees a year ago.
The bank’s net interest margin fell to 1.70% from 2.17% a quarter ago and 2.12% a year ago.
The bank’s profit would have been even lower if it were not for the fall in taxes for the quarter. The bank paid a tax of 459.3 mln rupees against 1.34 bln rupees in the Jan-Mar quarter.