IDBI Bank reports 53% jump in Q3FY22 net profit

IDBI Bank reported a 53 per cent year-on-year (y-o-y) jump in Q3 net profit at ₹578 crore against ₹378 crore in the year-ago period on the back of robust growth in net interest income (NII) and lower tax expenses.

Net interest margin showed substantial improvement, however, loan loss provisions shot up.

NII (difference between interest earned and interest expended) rose 31 per cent y-o-y to ₹2,383 crore (₹1,818 crore). 

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Tax expenses were lower by about 17 per cent y-o-y at ₹388 crore (₹465 crore).

Other income, comprising commission income from non-fund based banking activities, fees, earnings from foreign exchange and derivative transactions, profit and loss (including revaluation) from investments, dividends from subsidiaries and recoveries from accounts previously written off, declined 20 per cent y-o-y at ₹1,148 crore (₹1,432 crore).

Net interest margin rose 101 basis points to 3.88 per cent in the reporting quarter against 2.87 per cent in the year-ago quarter.

Loan loss provisions shot up to ₹940 crore against ₹49 crore in the year-ago quarter.

Asset quality

The GNPA position improved to 20.56 per cent of gross advances in the reporting quarter against 21.85 per cent in the preceding quarter. The Net NPA position improved a shade to 1.70 per cent of net advances against 1.71 per cent.

Gross advances increased about 5 per cent y-o-y to ₹1,67,317 crore, with the Retail : Corporate Ratio (Gross Advances) remaining constant at 63:37 as on December-end 2021 vis-vis as on September-end 2021.

Total deposits declined 0.81 per cent y-o-y to ₹2,22,578 crore, with the proportion of low-cost current account, savings account (CASA) increasing a tad to 54.69 in December 2021 against 54.64 in September 2021.