A recent press report said that IDBI Bank has reported 34 per cent rise in net profit to Rs. 335 crore on higher interest income and interest margin. The bank has planned to restrain credit growth in coming quarters as the lender wants to bring down stressed assets and improve the over all asset quality.
Mr. P. Sitaram Chief Financial Officer of the of the bank told the press that the bank has been working on a strategy to keep credit muted and that the bank does not want advances growth of over 15 per cent.
He added saying that the bank is intending to bring down its bad loan portfolio and improve the overall quality of its assets. The loan portfolio of the bank includes home loan, personal loan, auto loan, reverse mortgage loan, education loan etc.
The bank has reported a 34 per cent rise in net income to Rs. 335 crore for the quarter to June against Rs. 251 crore quarter on quarter, which was due to the rise in net interest income and net interest margin, but a lower rate of growth for advances at 15 per cent Q-o-Q.