IDBI Bank Q2 Net Down 38 Per Cent on Employee Cost, Provisioning

New Delhi: IDBI Bank on Friday posted a 38 per cent fall in net profit at Rs 118.49 crore for the second quarter that ended on September 30, 2014, on higher employee cost and provisioning.

The state-owned lender had registered a net profit of Rs 192.27 crore for the corresponding quarter a year ago.

The bank made provisioning towards bad loans of Rs 990.47 crore during July-September 2014 as against Rs 878.72 crore in the corresponding quarter of 2013-14.

Meanwhile, employee cost rose 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 filing to the BSE.

Gross bad loans or non-performing assets (NPAs) rose to 5.72 per cent in the second quarter of the ongoing fiscal year (FY15) from 4.98 per cent year ago.

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

Shares in IDBI Bank, on Friday, ended at Rs 70.55 apiece on the BSE, up 3.37 per cent from the previous close.