IDBI Bank posts net profit of Rs 378 cr in Q3; net interest income up 18%

Private sector lender IDBI Bank posted net profit of Rs 378 crore in the third quarter ended December 2020 (Q3FY21), aided by a rise in net interest income. This is the fourth consecutive quarter of profit for the lender. It had booked net loss of Rs 5,763 crore in Q3FY20. Its stock closed 2.17 per cent higher at Rs 28.3 per share on the BSE.

 

Net interest income rose 18 per cent to Rs 1,810 crore over Q3FY20, while net interest margin (NIM) improved by 60 basis points to 2.87 per cent in the quarter. Deposits grew from Rs 2.18 trillion in Dece­mber 2019 to Rs 2.24 trillion.

 

The bank, which is under the Reserve Bank of India’s Prompt Corrective Action regime, faces restrictions on lending to corporates and is ramping up retail and SME loan book. However, its total advances shrunk 7 per cent from Rs 1.72 trillion in December 2019 to Rs 1.59 trillion in December 2020.