Government-owned IDBI Bank has posted a 46 per cent jump in its net profit for the quarter ended June 30, helped by a healthy jump in its net interest income and despite a significant rise in its bad loans.
Net profit grew to Rs 251 crore during the quarter from Rs 172 crore in the year-ago period buoyed by a good jump in its net interest and fee-based revenues to Rs 851 crore and 385 crore, respectively. Total income grew to Rs 4,755 crore from Rs 4,219 crore in Q1 last year.
During the quarter, the bank witnessed a 38 per cent growth in its loans to Rs 1.35 lakh-crore while deposit-base expanded by 36 per cent to Rs 1.57 lakh crore. For the full fiscal, IDBI Bank has targeted a loan growth of 20 per cent with demand expected to come from SME, agriculture, infrastructure and mid-corporate segments, IDBI Bank Chief Financial Officer, P Sitaram told reporters in Mumbai.
"Although there was a slight decline in the loanbook-size in Q1 compared to the March-quarter, the growth should improve from here and for the full fiscal we target a 20 per cent loan growth," Sitaram said, adding the deposit book is also expected to grow at 20 per cent in FY 11. Corporate loans currently contribute more than 70 per cent of IDBI Bank's loanbook.