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IDBI Bank has reported a 35 per cent year-on-year (y-o-y) increase in standalone net profit at ₹691 crore in the fourth quarter of the previous fiscal against ₹512 crore in the same period a year ago.
The write-back in provisions towards bad loans, standard assets and restructured assets helped prop up the bottomline.
The bank clocked a 79 per cent y-o-y jump in net profit to ₹2,439 crore in FY22 against ₹1,359 crore in FY21.
In the reporting quarter, net interest income (difference between interest earned and interest expended) declined 25 per cent y-o-y to ₹2,420 crore (from ₹3,240 crore).
Other income was down 24 per cent y-o-y at ₹844 crore (from ₹1,113 crore). Other income includes commission, exchange and brokerage, profit/ loss on forex, recovery from written-off cases and miscellaneous income.
Provisions decline
The write-back in provisions towards non-performing assets (NPAs) was at ₹300 crore, standard assets at ₹464 crore, and restructured assets at ₹89 crore.
Overall, provisions and contingencies declined sharply to ₹823 crore (from ₹2,304 crore).
The gross NPAs position improved to 19.14 per cent of gross advances as at March-end 2022, against 20.56 per cent as at December-end 2021.
The net NPAs position improved to 1.27 per cent of net advances as at March-end 2022, against 1.70 per cent as at December-end 2021.
The net interest margin (NIM) was up at 3.97 per cent vis-a-vis the preceding quarter’s 3.88 per cent, but lower vis-a-vis the year ago quarter’s 5.14 per cent.
Deposits nudged up about 1 per cent y-o-y to stand at ₹2,33,134 crore as at March-end 2022.
The proportion of low-cost current account, savings account (CASA) deposits increased substantially to 56.77 per cent of total deposits as at March-end 2022, against 50.44 per cent as at March-end 2021.
Net advances were up about 14 per cent y-o-y to ₹1,45,772 crore as at March-end 2022. The composition of the advances portfolio corporate versus retail was realigned to 37:63 as on March 31, 2022, against 38:62 as on March 31, 2021.
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