Money & Banking

IDBI Bank posts ₹324-crore profit in Q2

Our Bureau Mumbai | Updated on October 23, 2020 Published on October 23, 2020

IDBI Bank reported a net profit of ₹324 crore in the second quarter ended September 30, 2020 against a net loss of ₹3,459 crore in the year ago period.

Net profit in the reporting (Q2) quarter jumped 125 per cent vis-a-vis the preceding quarter’s ₹144 crore.

The bottomline in Q2FY21 supported by a reversal in loan-loss provisions aggregating ₹165 crore. The bank had made loan-loss provisions aggregating ₹3,545 crore in the year ago quarter.

Net interest income (difference between interest earned and interest expended) edged up 4 per cent year-on-year to ₹1,695 crore (₹1,631 crore).

Also read: IDBI Bank launches banking services on WhatsApp

Other income, comprising income from non-fund based banking activities such as commission, fees, earnings from foreign exchange and derivative transactions, profit and loss from sale of investments and recoveries from written off accounts, too nudged up 4 per cent to ₹1,072 crore (₹1,033 crore).

Operating profit was up 23 per cent at ₹1,246 crore (₹1,009 crore).

Referring to the Reserve Bank of India's Resolution framework for Covid-related stress (August 6, 2020 circular), the bank said as a prudent measure it has made provision of ₹270 crore towards the expected provisioning requirement for cases to be restructured under the resolution framework.

IDBI Bank has made Covid- related provision of ₹ 247 crore in March 2020 quarter and ₹189 crore in June 2020 quarter, with the cumulative Covid-related provision of ₹436 crore as at September 30, 2020. “The provision made by the bank is more than minimum required as per the RBI guidelines,” the bank said in its notes to accounts.

Gross non-performing assets (NPAs) declined to 25.08 per cent of gross advances as at September-end 2020 against 29.43 per cent as at September-end 2019.

Net NPAs declined to 2.67 per cent of net advances as at September-end 2020 against 5.97 per cent as at September-end 2019.

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Published on October 23, 2020
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