IDBI Bank added 3.40% to Rs 36.50 after the bank reported a net profit of Rs 512 crore in Q4 FY21, up 278% compared with net profit of Rs 135 crore in Q4 FY20.
Total income during the quarter increased by 0.5% year-on-year (YoY) to Rs 6,962.59 crore.
Net Interest Income (NII) jumped 37.5% to Rs 3240 crore in Q4 FY21 from Rs 2356 crore in Q4 FY20. Net Interest Margin (NIM) improved 134 bps to 5.14% as on 31 March 2021 as compared to 3.80% as on 31 March 2020.
Operating Profit was at Rs 2879 crore in the fourth quarter, up by 53.6% from Rs 1874 crore reported in the same period last year.
Provisions & Contingencies increased by 55.1% to Rs 2457 crore in Q4 FY21 from Rs 1584 crore in Q4 FY20.
On the asset quality side, gross non-performing assets (NPAs) stood at Rs 36,211.95 crore as on 31 March 2021 as against Rs 37,559.39 crore as on 31 December 2020 and Rs 47272.37 crore as on 31 March 2021.
Gross NPA ratio improved to 22.37% as on 31 March 2021 as against 23.52% as on 31 December 2020 (Proforma GNPA Ratio as on 31 December 2020 was 24.33%) and 27.53% as on 31 March 2020.
Net NPA ratio improved to 1.97% as on 31 March 2021 as against 1.94% as on 31 December 2020 (Proforma GNPA Ratio as on 31 December 2020 was 2.75%) and 4.19% as on 31 March 2020.
Provision Coverage Ratio (including Technical Write-Offs) improved to 96.90% as on 31 March 2021 from 93.74% as on 31 March 2020.
As at 31 March 2021, the bank has made COVID-19 related provisions of Rs 363 crore. The provision made by the bank is more than minimum required as per the RBI guidelines. Considering that there is still stress in the economy due to the COVID situation, bank has continued with the COVID-19 provision.
Considering the second wave of COVID from mid of March 2021 which is again threatening to disrupt the economic activities in many states, where the pandemic is more severe and possibilities of lockdown going forward in case situation does not improve.
Since the intensity of the local lockdowns is still evolving and dynamic, the bank has preferred to have conservative and a pragmatic approach and have adequate provision made in March 2021 quarter to partially offset the impact and accordingly has provided Rs 500 crore in addition to the COVID-19 provision. The total cumulative provisions held towards COVID-19 are Rs 863 crore (other than provisions held for restructuring under COVID-19 norms).
IDBI Bank reported a net profit of Rs 1359 crore in the year ended 31 March 2021 compared with net loss of Rs 12887 crore in the year ended 31 March 2020. Total income declined by 2.9% to Rs 24556.93 crore in FY21 over FY20.
Tier 1 improved to 13.06% as on 31 March 31, 2021 as against 10.57% as on 31 March 2020. CRAR improved to 15.59% as on 31 March 2021 as against 13.31% as on 31 March 2020.
The bank's deposits have increased by 4% to Rs 2,30,898 crore as on 31 March 2021 from Rs 2,22,424 crore as on 31 March 2020.
CASA increased to Rs 1,16,491 crore as on 31 March 2021 as against Rs 1,06,188 crore as on 31 March 2020. Share of CASA in total deposits improved to 50.45% as on 31 March 2021 as against 47.74% as on 31 March 2020.
Gross advances, however, declined 6% to Rs 1,61,901 crore as on 31 March 2021 from Rs 1,71,690 crore as on 31 March 2020. The ratio corporate v/s retail advances ratio was realigned to 38:62 as on 31 March 2021 as against 44:56 as on 31 March 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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