IDBI shares hit on higher NPA, provisioning

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IDBI Bank shares fall 1.9 per cent, a day after the public sector lender posted a lower-than-expected April-June net profit of Rs 427 crore. Its net profit over the corresponding period (April-June) a year ago stood at Rs 335 crore.

The total income of the bank rose to Rs 6,787 crore for the quarter ended June 30, 2012 from Rs 6,060 crore a year earlier.

Analysts say the lender faced higher provisioning expenses of Rs 507 core in the previous quarter, after gross and net non-performing asset levels rose by 3.2 per cent and 2.1 per cent, respectively.

Last week state-run lenders, including Punjab National Bank and Central Bank of India reported a rise in bad loans, sending their shares sharply lower.

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