IDBI Bank reported a 44 per cent year-on-year (y-o-y) increase in the fourth-quarter standalone net profit at ₹1,628 crores, supported by a decent rise in net interest income and a sharp decline in provisions (other than tax) and contingencies.  

The bank reported a standalone net profit of ₹1,133 crore in the year-ago period. LIC is the bank’s promoter with management control, and the Government is a co-promoter without management control.  

IDBI Bank’s Board of Directors has recommended a dividend of ₹1.50 per equity share with a face value of ₹10 each for the financial year ended March 31, 2024.  

The Mumbai-headquartered bank’s net interest income (the difference between interest earned and interest expended) rose about 12 per cent year over year to ₹3,688 crore (₹3,280 crores in the year-ago quarter).

Other income, comprising income (including commission) from non-fund-based banking activities, fees, earnings from foreign exchange, profit/loss on sale of assets, profit/loss (including revaluation) from investments, dividend received from subsidiaries, and recoveries from advances written off, etc., dropped 30 per cent to ₹896 crore (₹1,288 crore).

Net interest margin (NIM) declined to 4.91 per cent from 5.01 per cent in the year-ago quarter.  

Provisions (other than tax) and contingencies were down 88 per cent at ₹114 crore (₹984 crore).

A breakup of the provisions shows that provision towards depreciation on investment declined sharply to ₹43 crore (₹937 crore); the bank received a provision write-back of ₹306 crores (against ₹864 crore provision in the year-ago period) on standard assets.

Further, provisions on Bad Debts Written off and Other Provisions were sharply lower at ₹1,049 crore (₹3,587 crore) and ₹5 crore (₹1,041 crore), respectively. Write-back in provisions towards non-performing assets (NPAs) was lower at ₹693 crore (₹5,469 crore).

The gross NPA to gross advances position improved to 4.53 per cent as of March-end 2024, against 4.69 per cent as of December-end 2023. The net NPA to net advances position was unchanged at 0.34 per cent.

Total deposits increased by 9 per cent yoy to stand at ₹2,77,657 crore as on March-end 2024. Low-cost CASA (current account, savings account) deposits declined to 50.43 per cent of total deposits, compared to 53.02 per cent in the year-ago quarter.

Gross Advances rose by 14.44 per cent yoy to stand at ₹1,96,894 crore, with structured retail advances (housing loans, loans against property, auto loans, education & personal loans, and others) growing at 11.68 per cent; non-structured retail advances (gold loan, agriculture, MSME, bulk/centralised business and other retail) growing at 26.56 per cent; and corporate at 8.77 per cent.

The retail to corporate advances ratio stood at 70:30 as of March 2024, compared to 69:31 as of March 2023.