Earnings Review
IDBI Bank's Apr-Jun PAT rises 17% on surge in other income
This story was originally published at 16:22 IST on 21 July 2025
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--IDBI Bank Apr-Jun net profit INR 20.07 bln vs INR 17.19 bln year ago
--IDBI Bank Apr-Jun total income INR 84.58 bln vs INR 74.71 bln year ago
--IDBI Bank gross NPA ratio 2.93% as on Jun 30 vs 2.98% qtr ago
--IDBI Bank net NPA ratio 0.21% as on Jun 30 vs 0.15% qtr ago
--IDBI Bank Basel III capital adequacy ratio 25.39% as on Jun 30
--IDBI Bank provision coverage 99.31% as on Jun 30
--IDBI Bank Apr-Jun net interest income INR 31.66 bln vs INR 32.33 bln yr ago
--IDBI Bank Apr-Jun net interest margin 3.68% vs 4.18% year ago
--IDBI Bank Apr-Jun cost of funds at 4.98% vs 4.81% year ago
--IDBI Bank Apr-Jun cost of deposits at 4.84% vs 4.58% year ago
--IDBI Bank Apr-Jun cost-to-income ratio at 48.86%
--IDBI Bank net advances INR 2.12 tln as on Jun 30, up 9% on year
--IDBI Bank total deposits INR 2.97 tln as on Jun 30, up 7% on year
--IDBI Bank CASA ratio 44.65% as on Jun 30 vs 48.57% year ago
By Vidhushi RajPurohit
MUMBAI – IDBI Bank Ltd.'s net profit for the June quarter rose 16.76% on year due to an increase in the bank's other income. A sharp rise in the interest earned on balances held with the Reserve Bank of India and other inter-bank funds also aided its bottom line. Sequentially, the bank's net profit was largely unchanged.
Other income of the bank rose 78.46% on year to INR 14.37 billion, from INR 8.05 billion a year ago. Consequently, the net profit of the bank increased to INR 20.07 billion in Apr-Jun, from INR 17.19 billion year ago. In the previous quarter, the bank had reported a net profit of INR 20.51 billion. The interest on balances with RBI and other inter-bank funds rose 131.82% on year to INR 1.88 billion. Total income of the bank also increased to INR 84.58 billion in the June quarter, from INR 74.71 billion a year ago.
The rise in the bank's other income was largely on account of an increase in the revenue from its corporate or wholesale banking segment, which was up nearly 21% on year at INR 21.87 billion. The treasury income of the bank also rose 15.5% on year to INR 39.63 billion in the latest quarter.
The net interest income of the bank was INR 31.66 billion compared with INR 32.33 billion in the year-ago quarter. The net interest margin of the bank fell 50 basis points on year to 3.68%. The contraction in the bank's net interest margin was likely on account of the RBI's Monetary Policy Committee cutting the repo rate cumulatively by 75 bps between April and June to 5.50%. In the June quarter, the cost of deposit of the bank also jumped to 4.84%, from 4.58% in the previous year. Cost of funds of the bank inched up to 4.98% in Apr-Jun, compared to 4.81% a year ago. The cost-to-income ratio of the private sector bank was at 48.86% for the June quarter.
In Apr-Jun, the private sector lender wrote off provisions worth INR 1.79 billion compared with INR 4.43 billion wrote-off a year ago. In the previous quarter, the bank made provisions amounting to INR 2.33 billion. The provision coverage ratio of the bank was at 99.31% as of Jun. 30.
On the asset quality front, the bank's gross non-performing asset ratio improved to 2.93% as on Jun. 30, from 3.87% in the previous year. The net non-performing asset ratio also moderated margnially to 0.21% from 0.23% a year ago. The Basel III capital adequacy ratio of the bank was at 25.39% as on Jun. 30.
Net advances of the bank increased 9% on year to INR 2.12 trillion as of Jun. 30. Total deposits rose 7% to INR 2.97 trillion in Apr-Jun. Current account and savings account deposits fell marginally to INR 1.33 trillion as of Jun. 30, from INR 1.35 trillion in the previous year. The bank's current account, savings account ratio, inched lower to 44.65%, from 48.57% a year ago. On Monday, shares of the bank closed 1.4% lower at INR 97.19 on the National Stock Exchange. End
Edited by Tanima Banerjee
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