Earnings Review
IDBI Bank Jul-Sept net profit surge on higher NII, NIM
This story was originally published at 18:49 IST on 25 October 2024
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Informist, Friday, Oct. 25, 2024
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--IDBI Bank current, savings account ratio 48.14% as on Sept 30
--IDBI Bank total deposits INR 2.78 tln as on Sept 30, up 11% on yr
--IDBI Bank net advances INR 2.00 tln as on Sept 30, up 19% on yr
--IDBI Bank Jul-Sept net interest margin 4.87%, up 54 bps on year
--IDBI Bank Jul-Sept net interest income INR 38.75 bln, up 26% on year
--IDBI Bank provision coverage ratio 99.42% as on Sept 30
--IDBI Bank Basel III capital adequacy ratio 21.98% as on Sept 30
--IDBI Bank net NPA ratio 0.20% as on Sept 30 vs 0.23% quarter ago
--IDBI Bank gross NPA ratio 3.68% as on Sept 30 vs 3.87% quarter ago
--IDBI Bank Apr-Sept total income INR 162.26 bln vs INR 146.36 bln year ago
--IDBI Bank Apr-Sept net profit INR 35.56 bln vs INR 25.47 bln year ago
--IDBI Bank Jul-Sept total income INR 87.55 bln vs INR 69.24 bln year ago
--IDBI Bank Jul-Sept net profit INR 18.36 bln vs INR 13.23 bln year ago
By Vidhushi RajPurohit
MUMBAI – IDBI Bank's net profit surged during the September quarter, helped by buoyant growth in net interest income and a rise in net interest margin. The net profit increased 39% from a year ago to INR 18.36 billion. On a sequential basis, the net profit rose 7%.
The total income of the bank rose 26% on year to INR 87.55 billion. Sequentially, the total income was up 17%. On the other hand, the bank reported an 18% increase in its total expenses to INR 57.48 billion. The higher growth in total income compared with expenses pushed up the operating profit of the bank by 45% on year to INR 30.06 billion.
The net interest income of the bank rose 26% on year to INR 38.75 bln, while the net interest margin rose 54 basis points to 4.87% during the quarter.
Higher provisions in Jul-Sept, however, capped the rise in profit. The bank set aside INR 5.6 billion for provisions and contingencies, as against a write-back of INR 2.27 billion a year ago.
The bank reported an improvement on the asset quality front, as its gross non-performing assets ratio declined to 3.68% as of Sept. 30 from 4.90% a year ago and 3.87% a quarter ago. The net non-performing assets ratio declined to 0.20% as of Sept. 30 from 0.39% a year ago and 0.23% a quarter ago.
The bank reported a provision coverage ratio 99.42% as on Sept. 30. The Basel III capital adequacy ratio of the bank was 21.98% as on Sept. 30, slightly up from 21.26% a year ago.
The loan book of the bank grew at a faster pace than deposits. The total deposits of the bank increased 11% on year to INR 2.78 trillion, while net advances increased 19% on year to INR 2.01 trillion as of Sept. 30. The ratio of the low-cost current account and savings account was 48.14% as of Sept. 30. The share of corporate and retail in total gross advances was 29:71.
The private bank reported an increase in the cost of deposits to 4.66% from 4.22% a year ago. The cost of funds increased to 4.87% from 4.49% a year ago. Shares of IDBI Bank Friday closed 1.7% higher at INR 82.66 on the National Stock Exchange. End
Edited by Saji George Titus
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