IDBI Bank on Monday reported its best-ever financials since it had gone down under a pile of bad loans that peaked at over a third of its assets in FY18, with a robust all-round performance, led by a 62% jump in its net profit to Rs 1,224 crore and an industry-leading margin for the June quarter.
Net advances grew 20% YoY to Rs 1.7 trillion. Retail advances jumped to 69% of the overall loan book from 63% a year ago, while corporate advances fell to 31% of the book from 37% a year ago. Auto loans, education loans, personal loans, loan against property and housing loan segments witnessed a strong growth in the quarter under review.
Net interest income, the difference between interest earned and interest expended, grew 61% YoY to Rs 3,998 crore. Non-interest income declined 25% to Rs 852 crore.
Total deposits rose 9% to Rs 2.4 trillion as on June 30. Akin to the trends in the banking industry, current account savings account (CASA) deposits rose to Rs 1.29 trillion from Rs 1.25 trillion a year ago. Bulk deposits rose 160% to Rs 29,796 crore.
The net interest margin rose by 178 basis points to 5.80% for the June quarter even as the cost of deposits inched up.
Cost of funds rose to 4.40% from 3.61% a year ago. The cost of deposits rose to 4.12% from 3.35% amid the rising interest rate scenario.
On the margin guidance, chief executive officer and MD Rakesh Sharma said as both assets and liabilities get repriced, “I see the margin trending close to 4% without any one-off items…”
The asset quality witnessed an improvement in the June quarter, with the gross non-performing asset ratio falling 1,485 basis points YoY to 5.05%. The net non-performing asset ratio fell 82 bps to 0.44%. The bank wrote off loans worth Rs 531 crore and upgraded loans worth Rs 171 crore in the quarter under review.