IDBI Oct-Dec net up 58 pct, NIM at 2.28 pct

MUMBAI:Public-sector lender IDBI Bank said on Tuesday it posted a 58 percent rise innet profit in Oct-Dec at 4.5 billion rupees while net interest income (NII)surged.

Its NII rose 68 percent to 12.04 billion rupees while netinterest margin increased to 2.28 percent during the quarter from 1.59 percent ayear ago, it said in a press release.

Mid-cap Indian banks havereported strong profits for Oct-Dec so far, riding on robust loan growth andincreased corporate activity, but rising interest rates could weigh on marginsgoing forward.

On Tuesday, India's central bank raised interest ratesby a quarter of a percentage point to clamp down on resurgent inflation whileconcerns loomed at large about more hikes, going forward. For related storyclick on

IDBI's deposits grew 5 percent to 1.5 trillion rupees whileadvances grew 21 percent to 1.34 trillion rupees as at end-December, itadded.

India's top lender State Bank of India , whichposted better-than-expected quarterly profit, forecast 20 percent to 22 percentloan growth in fiscal 2012 as demand for credit remains strong in Asia'sthird-largest economy.

Similarly, several other banks have alsoforecast a more than 20 percent growth in advances.

IDBI's netnon-performing assets were at 1.2 percent while provision coverage, includingtechnical write-offs, was 75.6 percent, against the norm of 70 percent, itadded.

Shares in the firm ended down 0.59 percent on Tuesday at 151.8rupees in a weak Mumbai market.