IDBI Bank jumps after turnaround Q3 numbers

IDBI Bank advanced 2.17% to Rs 28.30 after net profit stood at Rs 378.42 in Q3 December 2020 as against a net loss of Rs 5,763.04 crore in Q3 December 2019.

Total income fell 4.55% to Rs 5,932.25 in Q3 December 2020 as compared to Rs 6,215.60 crore in Q3 December 2019. Profit before tax (PBT) jumped 11.51% to Rs 842.95 crore in Q3 FY21 as against Rs 755.89 crore in Q3 FY20. Provision for taxes tumbled 92.87% to Rs 464.53 crore in Q3 FY21 as compared with Rs 6,518.93 crore in Q3 FY20. The result was declared during market hours today, 28 January 2020.

Operating profit for Q3 FY2021 grew 28% to Rs 1,639 crore as against Rs 1,278 crore in Q3 FY2020. Net Interest Income (NII) for Q3 FY2021 jumped 18% to Rs 1,810 crore from Rs 1,532 crore for Q3 FY2020. Net Interest Margin (NIM) improved 60 bps to 2.87% in Q3 FY2021 as compared to 2.27% in Q3 FY2020 and 2.70% in Q2 FY2021.

Gross non-performing assets (NPAs) stood at Rs 37,559.39 crore as on 31 December 2020 as against Rs 41,090.53 crore as on 30 September 2020 and Rs 49,502.68 crore as on 31 December 2019. The ratio of gross NPAs to gross advances stood at 23.52% as on 31 December 2020 as against 25.08% as on 30 September 2020 and 28.72% as on 31 December 2019. The ratio of net NPAs to net advances stood at 1.94% as on 31 December 2020 as against 2.67% as on 30 September 2020 and 5.25% as on 31 December 2019.

The bank's provisions and contingencies soared 52.56% to Rs 796.31 crore in Q3 FY21 over Rs 521.95 crore in Q3 FY20. Provision Coverage Ratio (PCR) (including technical write-offs) improved to 97.08% as on 31 December 2020 from 92.41% as on 31 December 2019 and 95.96% as on 30 September 2020.

CASA increased to Rs 1,09,880 crore as on 31 December 2020 as against Rs 1,03,966 crore as on 31 December 2019 and Rs 1,08,217 crore as on 30 September 2020. Share of CASA in total deposits improved to 48.97% as on 31 December 2020 as against 47.65% as on 31 December 2019 and 48.33% as on 30 September 2020.

In accordance with the RBI guidelines relating to COVID-19, IDBI Bank has cumulative COVID-19 related provision of Rs 436 crore as at 31 December 2020. The provision made by the bank is more than minimum required as per the RBI guidelines. IDBI Bank had made a provision of Rs 70 crore during the quarter (Rs 270 crore as on 30 September 2020 has been continued), towards the provisioning requirement for cases to be restructured under the resolution framework. The cumulative provision is Rs 340 crore as at 31 December 2020.

IDBI Bank offers a wide range of products from savings and current bank account to loans for retail and MSME customers or agri-loans to farmers.

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