Inspite of putting up a low profit scenario for the March quarter, IDBI Bank has proved to be better than others in certain aspects. The bank has posted a flat profit this quarter while it had posted 29% growth in the previous one.

However, the loan book of the bank has grown at 34% in the March quarter. This shows a pace twice as fast as the industry growth rate. So the basic fall in its profits can be attributed to provisions which showed a four times growth in the March quarter.

The Net Interest Income (NII) of the bank has shown a 47% growth in the March quarter. The bank came up with 18 new branches in the quarter and a total of 183 branches in the fiscal ended. Increased number of branches would lead it to cash on low cost retail deposits and reduce borrowing.

The current current and savings account (CASA) deposits account for 14.6% of the total deposits of the bank.

The bank has also made great development in the provision coverage ratio. The ratio has increased to 75% in March 2010 quarter as compared to 33% in the quarter previous to that.

The asset quality of the bank is also decent. As of the end of the last fiscal, NPAs formed only 1% of the net advances of the bank. This is also a good aspect of the bank. But still it needs to traverse a long path to come at par with other banks.