IDBI Bank soars after turnaround Q4 numbers

IDBI Bank surged 18.23% to Rs 24 after the bank reported a net profit of Rs 135 crore as against net loss of Rs 4918.44 crore in Q4 March 2019.

The company returned to profit after reporting net loss for last 13 quarters. Total income rose 4.7% to Rs 6924.94 crore in Q4 March 2020 from Rs 6616.06 crore in Q4 March 2019. Profit before tax (PBT) stood at Rs 289.66 crore in Q4 March 2020 as against a pre-tax loss of Rs 7136.90 crore in Q4 March 2019. The result was declared on Saturday, 30 May 2020.

IDBI Bank posted net interest income of Rs 2356 crore in Q4 March 2020, rising 46% year-on-year from Rs 1609 crore posted in the same period last year. Net interest margin stood at 3.8% in Q4 March 2020, rising 154 basis points from 2.26% in Q4 March 2019.

Gross non-performing assets (NPAs) stood at Rs 47,272.37 crore as on 31 March 2020 as against Rs 49,502.68 crore as on 31 December 2019 and Rs 50,027.94 crore as on 31 March 2019.

The ratio of gross NPAs to gross advances stood at 27.53% as on 31 March 2020 as against 28.72% as on 31 December 2019 and 27.47% as on 31 March 2019. The ratio of net NPAs to net advances stood at 4.19% as on 31 March 2020 as against 5.25% as on 31 December 2019 and 10.11% as on 31 March 2019.

Provisions and contingencies declined 81.4% to Rs 1584.14 crore in Q4 March 2020 from Rs 8532.78 crore in Q4 March 2019. Provision coverage ratio (including technical write-offs) is 93.74% as on 31 March 2020.

As on 31 March 2020, the bank said it made COVID-19 related provisions of Rs 247 crore in Q4 March 2020 against standard assets. As a result of increased recovery from resolution of bad loans, there was write back of Rs 1,511 crore as against provision of Rs 7,233 crore in the same period last year.

Share of CASA in total deposits improved to 47.74% as on 31 March 2020 as against 42.54% as on 31 March 2019. Tier 1 capital and CRAR has improved and stood at 10.57% and 13.31% respectively as on 31 March 2020 as against 9.14% and 11.58% as on 31 March 2019.

Net loss for the entire fiscal year 2019-20 stood at RS 12,887 crore against a loss of Rs 15,116 crore in fiscal year 2018-19.

Meanwhile the media reported that sale of government's stake in IDBI Bank may be delayed beyond March 2021, due to depressed valuation amid COVID-19 pandemic.

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.

As on 31 March 2020, the Government of India holds 47.11% stake, while Life Insurance Corporation of India held 51% stake in the IDBI Bank.

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