IDBI Bank net profit rises 35% to Rs 691 crore in fourth quarter
Private sector lender IDBI Bank’s net profit rose 35 per cent to Rs 691 crore year-on-year (YoY) in the fourth quarter (Q4) of FY22 on moderation in provisions and contingencies.
For FY22, the net profit rose 79 per cent to Rs 2,439 crore from Rs 1,359 crore in the previous financial year.
FY22 was the bank’s first full year of performance after it exited from the Reserve Bank of India’s Prompt Corrective Action plan in March 2021.
Its net interest income (NII) was down by 25 per cent at Rs 2,421 crore for Q4FY22 against Rs 3,239 crore in the year-ago period. Net interest margin (NIM) stood at 3.97 per cent for Q4 against 5.14 per cent for Q4FY21.
IDBI Bank’s stock closed flat at 45.15 per share on BSE.
Provisions and contingencies fell by 72 per cent to Rs 669 crore in Q4FY22 from Rs 2,393 crore in Q4FY21. Its asset quality improved with decline in Gross Non-performing assets (NPAs) to 19.14 per cent in March 2022 from 22.37 per cent a year ago. Its net NPAs ratio stood at 1.27 per cent in March 2022, down from 1.97 per cent a year ago.
Rakesh Sharma, managing director and chief executive of IDBI Bank, said the lender expects to bring down GGNPA below 14 per cent by the end of March 2023.
Its gross advances rose by 10.07 per cent YoY to Rs 178,207 crore as of March 31. The composition of advances portfolio was corporate (37 per cent) and retail (63 per cent) at the end of March 2022. It expects to grow loan book by 10-12 per cent in Fy23, he said.
Its total deposits grew 1 per cent YoY to Rs 233,134 crore at the end of March 2022. The share of low cost deposits — current account and savings accounts -– rose to 56.77 per cent in March 2022 from 50.44 per cent a year ago.
The capital adequacy improved to 19.06 per cent as of March 2022 from 15.59 per cent a year ago.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
