IDBI Bank’s Q2FY25 net profit up 39% at ₹1,836 cr

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IDBI Bank reported a robust 39 per cent increase in second quarter (Q2FY25) standalone net profit at ₹1,836 crore on the back of healthy growth in net interest income as well as other income despite a rise in provisions for standard assets.

The private sector lender had reported a net profit of ₹1,323 crore in the year ago quarter.

Net interest income (difference between interest earned and interest expended) in the reporting quarter was up about 26 per cent y-o-y at ₹3,875 crore (₹3,066 crore in the year ago period).

Other income, including fee-based income, treasury income, and the recovery in written-off accounts, rose about 48 per cent y-o-y to ₹1,313 crore (₹889 crore).

While the bank received a write-back of ₹165 crore from provisioning for non-performing assets (NPAs) against a write-back of ₹113 crore in Q2FY24, the provisioning for standard assets jumped to ₹1,147 crore against a write-back of ₹260 crore in Q2FY24. Provisions towards bad debts written-off rose to ₹307 crore (₹84 crore).

Net interest margin (NIM) improved to 4.87 per cent against 4.33 per cent in the year ago period.

Gross Non-Performing Assets (NPAs) position improved to 3.68 per cent of gross advances as at September-end 2024, compared to 4.90 per cent as of September-end 2023. The net NPAs position also improved slightly to 0.20 per cent of net advances, compared to 0.39 per cent.

Net advances increased by about 19 per cent y-o-y to ₹2,00,944 crore at September-end 2024. Total deposits increased by 11 per cent y-o-y to ₹2,77,602 crore