IDBI Bank net jumps 60% at ₹1,323 crore on declining NPAs

IDBI Bank reported a 60 per cent year-on-year (y-o-y) rise in second quarter standalone net profit at ₹1,323 crore, supported by healthy growth in net interest income and write-back in provisions on bad loans and standard assets. The bank had reported a net profit of ₹828 crore in the year ago quarter.

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Net interest income (difference between interest earned and interest expended) increased 12 per cent y-o-y at ₹3,067 crore (₹2,738 crore in the year-ago quarter). Other income, including non-fund based income, treasury income and recovery in written-off accounts, was down 18 per cent y-o-y to ₹889 crore (₹1,087 crore).

NIM comes down

Net interest margin (interest income – interest expense/ total assets) declined to 4.33 per cent from 4.37 per cent a year ago.

Gross non-performing assets (GNPAs) position improved to 4.90 per cent of gross advances as on September-end 2023 against 5.05 per cent as at June-end 2023. Net NPAs position too improved to 0.39 per cent of net advances against 0.44 per cent.

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The bank received provision write-back on bad loans and standard assets of ₹113 crore (against ₹63 crore write-back in the year-ago quarter) and ₹260 crore (against ₹339 crore provision), respectively.

Net advances increased by about 15 per cent y-o-y to ₹1,68,502 crore as at September-end 2023.

Deposits were up about 8 per cent y-o-y and stood at ₹2,49,481 crore as at September-end 2023.The share of current account,savings account deposits declined to 51.49 per cent of total deposits from 56.19 per cent.