NE BUSINESS BUREAU
MUMBAI, JULY 26
Private sector lender IDBI Bank on Thursday announced that its net profit rose 25 percent year on year to Rs 756 crore in the first quarter ended June 2022, on the back of a sharp fall in provisions and contingencies.
The bank had posted a net profit of Rs 603 crore during the same period last year (Q1FY22). Sequentially, its net profit rose by 10 percent from Rs 691 crore in Q4FY22.
The lender, which is predominantly owned by Life Insurance Corporation of India and the Government of India, is a candidate for strategic divestment.
- The provisions and contingencies fell by 48 percent to Rs 959 crore in June 2022 quarter from Rs 1,844 crore in the year ago quarter
- The bank had posted a net profit of Rs 603 crore during the same period last year (Q1FY22)
- The lender, which is predominantly owned by Life Insurance Corporation of India and the Government of India, is a candidate for strategic divestment.
The lender’s net interest income declined by 1 percent during the reporting period to Rs 2,488 crore from Rs 2,506 crore in Q1FY22. The NII was up by three percent from Rs 2,421 crore in the quarter ended March 2002.
Its net interest margin (NIM) declined to 4.02 percent in Q1FY23 from 4.06 percent a year ago, but rose from 3.97 percent in Q4FY22, according to an analysts’ presentation.
Here are the highlights of IDBI Bank Financial Results for Q1 FY 2023. Watch the video now! #IDBIBankQ1FY23 #IDBIBankResults pic.twitter.com/R5XEip7fze
— IDBI BANK (@IDBI_Bank) July 22, 2022
Other income fell by 34 percent YoY to Rs 1,140 crore from Rs 1,731 crore in Q1FY22 and was up 35 percent over Rs 844 crore in Q4FY22.
The provisions and contingencies fell by 48 percent to Rs 959 crore in June 2022 quarter from Rs 1,844 crore in the year ago quarter. However, they rose 43 percent from Rs 844 crore in the March 2022 quarter.
The bank’s asset quality profile improved with gross non-performing assets (GNPAs) declining to 19.9 percent in June 2022 from 22.7 percent in June 2021 and 20.16 per cent in March 2022. Net NPAs dipped to 1.25 percent at end of Q1FY23 from 1.67 percent a year ago and sequentially down from 1.36 percent at end Q4FY22.
The provision coverage ratio (PCR) rose to 97.79 per cent for the quarter under review from 97.42 per cent a year ago and 97.63 per cent in March 2022.
The bank’s loans grew 9 percent YoY to Rs 1.7 trillion at the end of June 2022, the bank said in a statement.
