IDBI Bank Q2 Net down 38% on employee cost, provisioning

New Delhi: IDBI Bank today said its net profit fell by 38 percent to Rs 118.49 crore in the second quarter ended September 30 in the current financial year on higher employee cost and provisioning.

The state-owned bank's net profit during the same quarter a year ago stood at Rs 192.27 crore.
Bank made provisioning towards bad loans of Rs 990.47 crore during July-September, 2014-15; up from Rs 878.72 crore in the similar quarter of 2013-14.

Meanwhile, employee cost went up to 497.31 crore during the quarter from Rs 360.49 crore a year earlier.

"Total income has increased from Rs 7,114.44 crore for the quarter ended September 30, 2013 to Rs 7,610.52 crore for the quarter ended September 30, 2014," it said in a BSE filing.

The gross bad loans or non-performing assets (NPAs) rose to 5.72 percent in Q2-FY15, from 4.98 percent year ago.

Net NPAs, however, reduced to 2.79 percent of total advances as of September 30, from 2.82 percent year earlier.

IDBI Bank shares closed at Rs 70.55 apiece on the BSE today, up 3.37 percent from the previous close.

Source: http://zeenews.india.com/business/realestate/latest-news/idbi-bank-q2-net-down-38-on-employee-cost-provisioning_111066.html