IDBI Oct-Dec net up 58 pct, NIM at 2.28 pct
MUMBAI: Public-sector lender IDBI Bank said on Tuesday it posted a 58 percent rise in net profit in Oct-Dec at 4.5 billion rupees while net interest income (NII) surged.
Its NII rose 68 percent to 12.04 billion rupees while net interest margin increased to 2.28 percent during the quarter from 1.59 percent a year ago, it said in a press release.
Mid-cap Indian banks have reported strong profits for Oct-Dec so far, riding on robust loan growth and increased corporate activity, but rising interest rates could weigh on margins going forward.
On Tuesday, India's central bank raised interest rates by a quarter of a percentage point to clamp down on resurgent inflation while concerns loomed at large about more hikes, going forward. For related story click on
IDBI's deposits grew 5 percent to 1.5 trillion rupees while advances grew 21 percent to 1.34 trillion rupees as at end-December, it added.
India's top lender State Bank of India , which posted better-than-expected quarterly profit, forecast 20 percent to 22 percent loan growth in fiscal 2012 as demand for credit remains strong in Asia's third-largest economy.
Similarly, several other banks have also forecast a more than 20 percent growth in advances.
IDBI's net non-performing assets were at 1.2 percent while provision coverage, including technical write-offs, was 75.6 percent, against the norm of 70 percent, it added.
Shares in the firm ended down 0.59 percent on Tuesday at 151.8 rupees in a weak Mumbai market.
Its NII rose 68 percent to 12.04 billion rupees while net interest margin increased to 2.28 percent during the quarter from 1.59 percent a year ago, it said in a press release.
Mid-cap Indian banks have reported strong profits for Oct-Dec so far, riding on robust loan growth and increased corporate activity, but rising interest rates could weigh on margins going forward.
On Tuesday, India's central bank raised interest rates by a quarter of a percentage point to clamp down on resurgent inflation while concerns loomed at large about more hikes, going forward. For related story click on
IDBI's deposits grew 5 percent to 1.5 trillion rupees while advances grew 21 percent to 1.34 trillion rupees as at end-December, it added.
India's top lender State Bank of India , which posted better-than-expected quarterly profit, forecast 20 percent to 22 percent loan growth in fiscal 2012 as demand for credit remains strong in Asia's third-largest economy.
Similarly, several other banks have also forecast a more than 20 percent growth in advances.
IDBI's net non-performing assets were at 1.2 percent while provision coverage, including technical write-offs, was 75.6 percent, against the norm of 70 percent, it added.
Shares in the firm ended down 0.59 percent on Tuesday at 151.8 rupees in a weak Mumbai market.
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