IDBI Bank net dips 28% in Q1 as provisioning for bad debts rises

NEW DELHI, JULY 18:

IDBI Bank has reported 28.1 per cent decline in net profit at Rs

306.95 crore for the first quarter ended June 30, 2014.



IDBI Bank on Thursday reported a 28 per cent decline in net profit for

the first quarter ended June 30 at Rs 307 crore (Rs 427 crore).



The bottomline performance was largely pulled down by a sharp jump in

provisioning for bad debts, which increased in the quarter under

review to Rs 739 crore (Rs 377 crore).



Total income grew 9.6 per cent to Rs 7,445 crore (Rs 6,790 crore). The

net profit was also bolstered by sharp increase in treasury gains to

Rs 147 crore (Rs 16 crore)



"We experienced sizeable slippages this quarter. But we do not expect

much of this strain to continue this year. I am confident that we will

not only maintain last year's bottomline performance, but will do

better than that," M. S. Raghavan, Chairman and Managing Director,

IDBI Bank, told a press conference here.



The bank had recorded a net profit of Rs 1,882 crore for the financial

year ended March 31, 2013. To support business growth, IDBI Bank has

sought capital support of Rs 3,000 crore from the Government, Raghavan

said.



Raghavan said that the bank was targeting a deposit growth of 12 per

cent and credit growth of 12 per cent this fiscal. IDBI Bank is keen

on improving its retail deposits and plans are afoot to add at least

300 new branches this fiscal.



This public sector lender's Tier-I capital is slightly below 8 per cent.



Raghavan also said that the bank was yet to take a call on whether to

reduce the base rate further or not. The base rate currently stands at

10.25 per cent.