IDBI Bank’s profit jumps 53%

IDBI Bank has reported a 53 % jump in net profit in the October – December quarter of FY22, aided by a robust growth in net interest income (NII). Net profit for the quarter stood at Rs 578 crore compared to Rs 378 crore in the corresponding quarter of previous financial year (FY21).

Its NII, which is the interest earned minus the interest expended, increased by over 30 % year-on-year (YoY) to Rs 2,383 crore and sequentially it was up 29 %. However, non-interest income was down 20 % YoY to Rs 1,148 crore but it posted a sequential growth of 17 %. Net interest margin, a measure of profitability of banks, improved by 101 basis points (bps) to 3.88 % at the end of December quarter.

Provisions of the lender was down 7.62 % on YoY basis to Rs 801.81 crore but it was up 40 % on a sequential basis. Also, the bank has Covid provisions to the tune of Rs 863 crore as of December quarter.

Asset quality has improved both sequentially and on a YoY basis. Gross non-performing assets (NPAs) stood at 20.56 % at the end of December quarter (Q3FY22), compared to 23.52 % in Q3FY21 and 21.85 % in Q2FY22. Net NPAs, on the other hand, stood at 1.7 %. The provision coverage ratio of the lender remained very high at 97.10 %.