Earnings Review
IDBI Bk PAT up 31% as provisions tumble, NII grows strongly
This story was originally published at 17:14 IST on 20 January 2025
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--IDBI Bank Oct-Dec net profit INR 19.08 bln vs INR 14.58 bln year ago
--IDBI Bank Oct-Dec total income INR 85.65 bln vs INR 75.14 bln year ago
--IDBI Bank Oct-Dec provisions INR 1.66 bln vs INR 3.20 bln year ago
--IDBI Bank Apr-Dec net profit INR 54.64 bln vs INR 40.06 bln year ago
--IDBI Bank Apr-Dec total income INR 247.91 bln vs INR 221.50 bln year ago
--IDBI Bank gross NPA ratio 3.57% as on Dec 31 vs 3.68% qtr ago
--IDBI Bank net NPA ratio 0.18% as on Dec 31 vs 0.20% qtr ago
--IDBI Bank Oct-Dec net interest income INR 42.28 bln, up 23% on year
--IDBI Bank provision coverage ratio 99.47% as on Dec 31
--IDBI Bank Oct-Dec cost-to-income ratio at 43.71%
--IDBI Bank net advances INR 2.07 tln as on Dec 31, up 18% on yr
--IDBI Bank total deposits INR 2.82 tln as on Dec 31, up 9% on yr
--IDBI Bank Oct-Dec cost of deposits at 4.63%
--IDBI Bank Oct-Dec net interest margin 5.17% vs 4.72% year ago
--IDBI Bank current, savings account ratio 46.35% as on Dec 31
By Vidhushi RajPurohit
MUMBAI – IDBI Bank's net profit for the quarter ended December rose 30.9% on year on the back of a strong growth in the net interest income and halving of provisions, the lender's results showed on Monday. The lender's net profit grew to INR 19.08 billion in Oct-Dec, with net interest income rising 23.1% year on year to INR 42.28 billion, which propelled total income 14.0% higher to INR 85.65 billion.
Shares of IDBI Bank ended 2.5% higher on Monday at INR 86.14 on the National Stock Exchange, boosted by the jump in profitability.
Also aiding the bottom line in Oct-Dec was lower provisioning, which fell 48.2% on year to INR 1.66 billion. However, provisions for bad loans saw a net reversal of INR 40.6 million, down from a reversal of INR 4.46 bln in the year-ago period.
The asset quality ratios of IDBI Bank also showed an improvement, with the gross non-performing assets ratio easing to 3.57% as of Dec. 31, down from 3.68% a quarter ago and 4.69% last year. The net NPA ratio also declined, coming in at 0.18% as against 0.20% on Sept. 30 and 0.34% at the end of 2023.
On the business side, IDBI Bank's net advances as at the end of December stood at INR 2.07 trillion, up 18.2% on year, growing twice as fast as deposits, which stood at INR 2.82 trillion, 9.3% higher from a year ago. Retail loans made up more than two-thirds of the entire book. Within deposits, the current account and savings account ratio stood at 46.35% as on Dec. 31, down from 48.14% as on Sept. 30 and 49.90% a year ago.
The decrease in the CASA ratio led to the bank's cost of deposits rising to 4.63% in Oct-Dec from 4.34% in the same period last year. The cost of funds also grew similarly to 4.82% from 4.60% last year. The net interest margin for Oct-Dec was 5.17%, up 45 bps from a year ago, with the cost-to-income ratio at 43.71%.
On the regulatory front, IDBI Bank's Basel-III capital adequacy ratio was 21.98% as of Dec. 31. The bank reported a provision coverage ratio of 99.47%, including technical write-offs, as of Dec. 31.
For Apr-Dec, the bank's net profit was INR 54.64 billion, up 36.4%, while total income reported a growth of 11.9% to INR 247.91 billion. End
Edited by Akul Nishant Akhoury
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