Non-operational income fuels NIDC’s profit by 36.6% in Q3

ShareSansar, May 18:

Sustaining impressive growth in the current fiscal year, NIDC Development Bank Limited reported a remarkable profit rise of 36.6 percent in the third quarter despite shrinking crore business and huge provisioning -- thanks to massive non operating income and write back amount.

Publishing its unaudited report for the third quarter today, the state-run development bank has stated that its net profit has surged to Rs 34.48 crore from Rs25.24 crore in the corresponding quarter of the last fiscal year.

It may be noted that NIDC had posted almost three fold net profit rise in the second quarter largely due to non-operational income.

It managed to post a huge profit in the third quarter, too, despite provisioning Rs 7.61 crore for possible losses and drop in operational profit from Rs 12.68 crore to Rs 3.75 crore.

The profit is attributable to a massive net non operating income of Rs 44.62 crore and the write back of Rs 5.10 crore.

Its net interest income has also dropped to Rs 16.31 crore down from Rs 18.90 crore.

It mobilized Rs 1.42 arba in deposit and Rs 1.60 arba in loan as compared to Rs 1.03 arba in deposit and Rs 1.38 arba in loan in the corresponding quarter.

Though its non-performing loan has significantly gone down to 21.64 percent from 31.49 percent in the third quarter of the last fiscal, the NPL, obviously, is still pretty worrisome.

Its EPS (annualized) is now priced at Rs 110.57, its net worth per share stands at Rs 473.25, and the P/E ratio is 3.81.