IDBI Bank Q3 net profit jumps 53% to Rs 578 cr on robust NII growth

Net interest income up 30% YoY to Rs 2,2383 cr

IDBI Bank has reported a 53 per cent jump in net profit in the October – December quarter of FY22, aided by a robust growth in net interest income (NII). Net profit for the quarter stood at Rs 578 crore compared to Rs 378 crore in the corresponding quarter of previous financial year (FY21).

Its NII, which is the interest earned minus the interest expended, increased by over 30 per cent year-on-year (YoY) to Rs 2,383 crore and sequentially it was up 29 per cent. However, non-interest income was down 20 per cent YoY to Rs 1,148 crore but it posted a sequential growth of 17 per cent. Net interest margin, a measure of profitability of banks, improved by 101 basis points (bps) to 3.88 per cent at the end of December quarter.

Provisions of the lender was down 7.62 per cent on YoY basis to Rs 801.81 crore but it was up 40 per cent on a sequential basis. Also, the bank has Covid provisions to the tune of Rs 863 crore as of December quarter.

Asset quality has improved both sequentially and on a YoY basis. Gross non-performing assets (NPAs) stood at 20.56 per cent at the end of December quarter (Q3FY22), compared to 23.52 per cent in Q3FY21 and 21.85 per cent in Q2FY22. Net NPAs, on the other hand, stood at 1.7 per cent. The provision coverage ratio of the lender remained very high at 97.10 per cent.

Further, the lender has revealed it has restructured loans worth Rs 1,941.51 crore as per Reserve Bank of India’s (RBI) Covid resolution framework. Also, the bank has restructured MSME loans worth Rs 789.17 crore under various regulatory schemes.

Loan book of the lender expanded 6.23 per cent sequentially to Rs 1.67 trillion while on a YoY basis the growth was around 4.8 per cent. But deposit book decreased marginally both sequentially and on YoY basis to Rs 2.22 trillion.

Shares of the lender are trading 1.48 per cent lower than previous days close at Rs 49.80 on the BSE.