IDBI Bank profit: IDBI Bank net profit rises 57% in Q3

IDBI Bank reported a 57% increase in net profit to Rs 1,458 crore in the third quarter of the financial year ended December 31, 2023.

During the corresponding period in the previous year, net profit was at Rs 927 crore. Net Interest Income, the difference between interest earned and expended, rose 17% to Rs 3,435 crore as against Rs 2,925 crore for Q3-2023.

Net Interest Margin was up 13 basis points to 4.72% on a year-on-year from 4.59%.A basis point is 1/100th of a percent.

Gross net performing assets was down 913 basis points to 4.69%, while net NPA was down 74 basis points to 0.34%. Provision coverage ratio (including technical write-offs) improved to 99.17% from 97.98%.

Aided by growth in the retail segment, the bank’s net advances grew by 18% YoY to Rs 1.75 lakh crore as on December 31, 2023 from Rs 1,48,384 crore as on December 31, 2022. During the quarter, the composition of corporate and retail in gross advances portfolio was at 29:71 as against 33:67 in the previous year.

Total Deposits grew 11% to Rs 2.58 crore from Rs 2.33 lakh crore.The Bank’s tier 1 capital improved to 18.04% and CRAR improved to 20.32%. Shares of IDBI Bank rose 13.45% to Rs 79.04 on the Bombay Stock Exchange when the BSE index fell 0.36%.