IDBI Bank Q2 net profit surges 75% to Rs 567 cr; NIM improves

Private lender IDBI Bank’s net profit rose by posted 75 per cent rise in net profit at Rs 567 crore in the second quarter ended September 2021 (Q2Fy22), on uptick in the net interest income (NII) and dip in provisions.

Mumbai-based bank, which is on block for strategic sale by government, had posted net profit of Rs 324 crore for Q2 Fy 21.

Its NII rose by nine per cent in reporting quarter at Rs 1,854 crore for Q2 FY 2022. The Net Interest Margin (NIM) improved by 32 basis points at 3.02 per cent on Year-on-Year (Y-o-Y) basis for Q2 FY 2022.

Its stock was down by 2.03 per cent to Rs 55.6 per share.

Its provisions declined by 12 per cent to Rs 642 crore in Q2Fy22 from Rs 730 crore in Q2Fy21. The provision Coverage Ratio (including Technical Write-Offs) improved to 97.27 per cent in September 2021 from 95.96 per cent in September 2020.

Gross Non-Performing Assets (NPAs) ratio improved to 20.92 per cent in September 30, 2021 as against 25.08% as on September 30, 2020. Bank has treated exposure to SREI group entities as NOA in Q2 and made provisions.

Its Net NPA ratio improved to 1.62 per cent in September 2021 from 2.67 per cent a year ago.

Its Gross Advances were flat at Rs 1,64,506 crore in September 2021 as against Rs 1,63,841 crore in September 2020. Rakesh Sharma, its managing director and chief executive, said with economic upturn, the credit is expected to grow at 8-10 per cent in the current financial year (Fy22).

Its deposits fell by 0.26 per cent Rs 2,23,323 crore from Rs 2,23,915 crore in September 2020. The share of low cost money – Current account and Savings account (CASA) – in total deposits improved to 54.64 per cent in September from 48.33 per cent a year ago.

Its Capital Adequacy Ratio (CAR) rose to 16.59 per cent in September 2021 from 13.67 per cent a year ago.