IDBI Bank reports 57% YoY rise in Q3 net profit

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IDBI Bank’s third quarter (Q3FY24) net profit rose 57 per cent year-on-year (yoy) to ₹1,458 crore against ₹927 crore in the year-ago period. The bottom line was supported by reasonable growth in net interest income and other income and write-back in provisions towards bad loans and standard assets.

The bank’s shares perked up to close at ₹79.04 apiece, up 13.45 per cent over the previous close on BSE.

Net interest income (difference between interest earned and interest expended) was up 17 per cent yoy at ₹3,435 crore (₹2,925 crore in the year-ago quarter).

Other income, including fee-based income, treasury income and recovery in written-off accounts, rose 13.5 per cent yoy to ₹973 crore (₹857 crore).

The bank’s operating profit increased about 13 per cent YoY to ₹2,327 crore (₹2,051 crore).

The core net interest margin (which excludes interest on IT refund and interest income from non-performing assets/NPAs & technically written-off accounts) declined a shade to 3.91 per cent against 3.93 per cent in the year ago quarter).

Gross non-performing assets (GNPAs) position substantially improved to 4.69 per cent of gross advances as at December-end 2023 against 13.82 per cent as at December-end 2022. Net NPAs position too improved to 0.34 per cent of net advances against 1.08 per cent.

The bank received write-back in provisions made towards NPAs as well as standard assets amounting to ₹446 crore (against provisions of ₹233 crore in Q3FY23) and ₹84 crore (against provisions of ₹291 crore in Q3FY23), respectively.

However, provisions towards bad debts written-off rose to ₹429 crore (₹251 crore).

The gross advances increased by 7.44 per cent YoY to ₹1,82,997 crore as at December-end 2023. The retail-to-corporate ratio (gross advances) stood at 71:29 against 67:33 as on December 2022.

Total deposits rose by 11 per cent YoY at ₹2,58,525 crore as at December-end 2023. The share of current account, savings account deposits declined to 49.88 per cent of total deposits from 54.44 per cent.