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IDBI Bank's Q1 profit up 25% to Rs.756 cr

The LIC-controlled private sector bank had posted a net profit of Rs 603.30 cr in April-June FY22

IDBI Bank’s Q1 profit up 25% to Rs.756 cr
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IDBI Bank’s Q1 profit up 25% to Rs.756 cr

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New Delhi: IDBI Bank on Thursday reported a 25 per cent jump in standalone net profit at Rs 756 crore in the June quarter, helped by a decline in bad loans.

The LIC-controlled private sector bank had posted a net profit of Rs 603.30 crore in April-June 2021-22. However, the total income declined to Rs 5,780.99 crore in the first quarter of the current fiscal from Rs 6,554.95 crore in the year-ago period.

The bank's asset quality improved with gross Non-Performing Assets (NPAs) falling to 19.90 per cent of the gross advances as of June 2022 from 22.71 per cent as of June 2021, according to a regulatory filing. Net NPAs too came down to 1.25 per cent from 1.67 per cent at the end of the first quarter of the last fiscal. The bank's provisions for bad loans and contingencies stood at Rs 1,751.80 crore in the June quarter, up substantially from Rs 888.05 crore in the year-ago period. As a result, provisions (other than tax) and contingencies declined significantly to Rs 959.23 crore from Rs 1,844.07 crore a year ago.

Provision Coverage Ratio (including Technical Write-Offs) improved to 97.79 per cent as on June 30, 2022 as against 94.42 per cent last year. However, the Net Interest Income (NII) declined to Rs 2,488 crore during the period under review. The same stood at Rs 2,506 crore in the preceding year. During the same time, Net Interest Margin (NIM) declined to 4.02 per cent as compared to 4.06 per cent in the previous fiscal. Capital adequacy ratio improved to 19.57 per cent in the June quarter, which was 16.23 per cent in the corresponding quarter last year.

During the quarter, the bank has sold entire stake 19.18 per cent in Asset Reconstruction Company (India) Ltd to Avenue India Resurgence Pvt Ltd for sale consideration of Rs 2,361.48 crore, resulting in profit of Rs 2,140.66 crore.

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