The net profit of IDBI Bank rose 44% year-on-year (YoY) in January-March due to a growth in its advances and lower provisions.
The bank posted a net profit of Rs 1,628 crore in the quarter under review, up 12% quarter on quarter (QoQ). The bank’s net advances rose 16% YoY to Rs 1.9 trillion as on March 31. Deposits rose 9% YoY to Rs 2.8 trillion. The share of low-cost current account savings account (CASA) deposits fell to 50.4% as on March 31 from 53% a year ago.
Net interest income, the difference between interest earned and expended rose 12% YoY to Rs 3,688 crore in the March quarter. The bank’s annualised net interest margin fell to 4.9% in January-March from 5.01% a year ago. The cost of funds rose 78 basis points (bps) YoY to 4.74% in the quarter under review.
The return on assets rose 39 bps YoY to 1.82% in the March quarter. The bank’s bottomline in the reporting quarter was aided by lower provisions. The lender’s provisions fell to Rs 547 crore in the March quarter from Rs 1,292 crore a year ago.
Its gross NPA ratio improved to 4.53% as on March 31 from 6.4% a year ago. Net NPA ratio improved to 0.34% as on March 31 from 0.92% a year ago.
Provision Coverage Ratio (including technical write-offs) improved to 99.09% as on March 31, 2024 from 97.94 % a year ago.
The bank’s capital adequacy ratio improved 182 bps YoY to 22.26% as on March 31.