IDBI Bank net profit jumps 64 per cent in Q4FY23 to ₹1,133 cr

IDBI Bank It posted an all-time high quarterly net profit of Rs.1,133 crore in the fourth quarter ended 31st March 2023, on the back of strong growth in net interest and other income, massive reversal in loan loss provisions and significant improvement in asset quality.

the Private lender net profit During the quarter, it increased by 64 per cent as compared to the last year period at Rs. 691 crore.

The Bank’s Board of Directors has recommended a dividend of 1 ruble per equity share with a par value of 10 rupees for the financial year ending 31st March 2023.

Net interest income (the difference between interest earned and interest disbursed) increased by about 35 per cent year-on-year (YoY) to ₹3,280 crores (2,420 crores in the last year period).

Non-interest income, which includes fee-based income, treasury income and recoveries on written off accounts, among others, increased by 52 per cent year-on-year to Rs.1,288 crore (Rs.844 crore).

improves NIM; NPAs retreat

Net interest margin (NIM) improved to 5.01 percent in the quarter, compared to 4.59 percent in the previous quarter and 3.97 percent in the year-ago quarter.

The bank received huge write-offs of distressed assets (NPAs) to Rs. 5,469 crore (Rs. 301 crore).

Rakesh Sharma, Managing Director and CEO said, “We have had a good recovery (Rs. 2,662 crore from two accounts combined showing about Rs. 3,500 crore transferred to National Asset Reconstruction Company Limited/NARCL).

“We are making additional provisions from any additional recovery we get and strengthening our balance sheet. There will be no hidden surprises. As of today, our balance sheet is clean.”

He noted that the need for additional provisions was closing in.

“Accounts have gone down in the SMA (Special Signal Accounts) category. Collection efficiency is improving. Next year, we will see further improvement in earnings,” Sharma said, adding that the bank expects its credit growth to be one or two percent higher. cent of the industry average in fiscal 24.

The provision coverage ratio (including technical write-offs) was 97.94 percent as at March 31, 2023 (previous year: 97.62 percent).

GNPAs improved to 6.38 percent of total advances at the end of March 2023 compared to 13.82 percent at the end of December 2022.

Net NPAs fell to 0.92 percent of net advances from 1.08 percent.

Total advances and deposits

Total bank deposits increased by 9.59 per cent year-on-year to INR 2,55,499 crore at end of March 2023 (Rs. 2,33,134 crore at end of March 2022).

Total advances increased by 18.70 per cent year on year to stand at Rs.1,62,568 crore (Rs.1,36,955 crore).