Public sector lender IDBI Bank disappointed analysts with its second quarter earnings on Tuesday. Profit during July-September quarter plunged 53.5 percent year-on-year to Rs 55.5 crore on higher provisions and low net interest income despite strong other income growth.
Net interest income during the quarter declined 0.4 percent to Rs 1,606 crore crore compared with year-ago period.
Asset quality deteriorated in the quarter ended September 2016 as gross non-performing assets (NPA) jumped to 13.05 percent from 11.92 percent and net NPA rose to 8.32 percent from 7.47 percent on sequential basis. In absolute terms, gross NPA climbed 10.5 percent quarter-on-quarter to Rs 30,134 crore and net NPA spiked 12 percent to Rs 18,195 crore in Q2.
Provisions for non-performing assets increased sharply by 38 percent year-on-year and 20 percent quarter-on-quarter to Rs 920.5 crore in the quarter ended September 2016, with provision coverage ratio of 54.91 percent at the end of Q2FY17.
Other income (non-interest income) in Q2 jumped 65.3 percent to Rs 1,394.40 crore and operating profit was up 1.4 percent at Rs 1,539.6 crore compared with year-ago period.
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