June 02, 2009 (LBO) – Sri Lanka’s National Development Bank (NDB) group net profit went up 30 percent to 455 million rupees in the quarter ended March 31, 2009 despite the adverse economic conditions, while bad loan provisions increased. Total group income roe 18 percent to 3.6 billion rupees, the bank said in a statement.
Interest income rose 21 percent to three billion rupees while interest expenses rose 18 percent to 1.9 billion rupees resulting in net interest income going up 28 percent to almost 1.2 billion rupees.
Provision for bad debts and loans written off rose 703 percent to 107 million rupees with a sharp increase in specific provision.
“The global financial meltdown and the economic recession are having an impact on the local economy and the banking industry,” the bank statement said.
“In this environment, the NDB Group has focused on consolidation and maintaining high quality assets, while ensuring stability and a strong balance sheet.”
Total group assets as at March 31, 2009 were 87 billion rupees, up four percent from December 31, 2008.
The bank’s net interest margin rose to 4.77 percent as at March 31, 2009 from 4.06 percent as at December 31, 2008.
The statement said NDB Ba