May 14, 2010 (LBO) – Sri Lanka’s NDB Bank’s group net profit for the March 2010 quarter fell 34 percent to 299 million rupees from a year ago with interest income down but non-interest income increasing, latest accounts showed. Total income fell 13 percent to 3.1 billion rupees in the quarter, according to a stock exchange filing.
Interest income fell 17 percent to 2.56 billion rupees, interest expenses fell at a faster 23 percent to 1.5 billion rupees, resulting in net interest income of just over a billion rupees, nine percent lower than the previous year.
Non-interest income rose 13 percent to 551 million rupees.
Provisioning for bad loans fell 34 percent to 70 million rupees
“The bank’s stringent policies in maintaining the quality of its loan book resulted in the ratio of Non Performing Loans (NPLs) to the gross lending portfolio improving from 2.58 percent as at December 31, 2009 to 2.43 percent as at March 31, 2010,” a bank statement said.
“NDB Bank’s NPL ratio remains one of the lowest in the local banking industry, and compares very favorably with the industry NPL ratio of 8.0 percent as at March 31, 2010.”
NDB Bank’s total performing loans and advances were up three percent to 56