IDBI Bank net profit jumps 75% in Q2 on lower employee costs, higher net interest income

Slippages amounted to Rs 1,541 crore, down from Rs 1,577 crore successful Q1FY22. Recoveries and upgrades were to the tune of Rs 1,910 crore, up from Rs 1,596 crore successful the June quarter. The slippage ratio for the twelvemonth truthful acold stands astatine 2.2% and the slope intends to incorporate it astatine astir 3% for the afloat year.

IDBI Bank connected Thursday reported a 75% year-on-year (y-o-y) leap successful nett net to Rs 567 crore for the 4th ended September, driven by a simplification successful worker costs and an betterment successful nett involvement income (NII).

The bank’s NII, oregon the quality betwixt involvement earned and involvement expended, roseate 9.45% y-o-y to Rs 1,854 crore.

P Sitaram, main fiscal officer, IDBI Bank, explained that the betterment successful the bottommost enactment was aided by definite accounting benefits.

“We person seen a simplification successful the worker cost. In September 2020, due to the fact that of the involvement complaint movement, we had to instrumentality an actuarial deed connected status benefits. This twelvemonth truthful far, the question successful involvement rates has not fixed emergence to immoderate important summation successful status benefits implicit and supra the March 2021 levels,” Sitaram said.

The backstage lender’s pre-provisioning operating nett roseate 15% y-o-y to Rs 1,209 crore. The nett involvement borderline (NIM), a cardinal measurement of profitability, stood astatine 3.02%, down 104 ground points (bps) sequentially.

The lender’s provisions roseate 11.6% y-o-y to Rs 434 crore successful Q2FY22. Asset-quality show was a mixed container arsenic the gross non-performing plus (NPA) ratio improved to 20.92% successful Q2FY22 from 21.48% successful the erstwhile quarter. The nett NPA ratio roseate to 1.62% successful the September 4th from 1.56% successful the June quarter. The proviso sum ratio (PCR) improved to 97.27% arsenic connected September 30, 2021, from 95.96% arsenic connected September 30, 2020.

Slippages amounted to Rs 1,541 crore, down from Rs 1,577 crore successful Q1FY22. Recoveries and upgrades were to the tune of Rs 1,910 crore, up from Rs 1,596 crore successful the June quarter. The slippage ratio for the twelvemonth truthful acold stands astatine 2.2% and the slope intends to incorporate it astatine astir 3% for the afloat year.

The bank’s full deposits fell 0.26% y-o-y to Rs 2.23 lakh crore astatine the extremity of September 2021. The worth of existent relationship savings relationship (CASA) with the slope accrued 13% y-o-y to Rs 1.22 lakh crore. The stock of CASA successful full deposits improved to 54.64% arsenic connected September 30, 2021, against 48.33% arsenic connected September 30, 2020.
Gross advances grew 0.41% y-o-y to Rs 1.64 lakh crore astatine the extremity of September 2021. Retail loans accounted for 63% of the full indebtedness book, with the remainder being firm loans.

Shares of IDBI Bank ended astatine Rs 55.60 connected the BSE connected Thursday, down 2.03% from their erstwhile close.