The net profit of IDBI Bank rose 57% year-on-year (y-o-y) in October-December owing to a growth in advances.
The bank posted a net profit of Rs 1,458 crore in the December quarter, up 10% on a sequential basis.
The bank’s net advances rose 18% y-o-y to Rs 1.8 trillion as on December 31. IDBI Bank increased its focus on the retail segment in the quarter under review.
Retail mix rose to 71% of gross advances from 67% a year ago. At the same time, corporate mix fell to 29% of gross advances from 33% a year ago.
Total deposits grew 11% y-o-y to Rs 2.6 trillion as on December 31. The ratio of low cost current account savings account (CASA) deposits fell to 49.88% as on December 31 from 54.4% a year ago.
Cost of deposit rose to 4.34% in the December quarter from 3.51% a year ago. Cost of funds rose to 4.60% in October-December from 3.82% a year ago.
Bucking the trend in the overall industry, IDBI Bank’s net interest margin rose to 4.72% in quarter under review from 4.59% a year ago. Return on assets rose 48 basis points (bps) y-o-y to 1.70% in the quarter under review.
Net interest income, which is the difference between interest earned and expended rose 17% y-o-y to Rs 3,435 crore in the quarter under review.
Gross non-performing asset ratio fell to 4.69% as on December 31, from 13.82% a year ago. Net non-performing asset ratio declined to 0.34% as on December 31, from 1.08% a year ago.
Provision Coverage Ratio (including Technical Write-Offs) improved to 99.17% as on December 31 from 97.98% a year ago.
The bank’s tier 1 capital improved to 18.04% as on December 31, from 17.60% a year ago.