IDBI Bank Q4 standalone net rises 44% on higher NII, lower provision
IDBI Bank reported a 44 per cent year-on-year (y-o-y) increase in the fourth-quarter standalone net profit at ₹1,628 crore, supported by a rise in net interest income and a sharp decline in provisions (other than tax) and contingencies.
The bank had 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 co-promoter.
1.50/SHARE DIVIDEND
The IDBI Bank board has recommended a dividend of ₹1.50 per equity share with a face value of ₹10 each for FY24.
The Mumbaiheadquartered bank’s net interest income (the dierence between interest earned and expended) rose about 12 per cent in Q4 to ₹3,688 crore (₹3,280 crore).
Other income, comprising income (including commission) from non-fund-based
The bank’s net interest income rose about 12% in Q4 to ₹3,688 crore
banking activities, fees, earnings from foreign exchange, profit/loss on sale of assets, and profit/loss (including revaluation) from investments, dropped 30 per cent to ₹896 crore (₹1,288 crore).
The net interest margin declined to 4.91 per cent in Q4 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).
Provisions on bad debts written o 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).
NPAS DOWN
The gross NPA to gross advances position improved to 4.53 per cent as of Marchend 2024, against 4.69 per cent as of December-end. The net NPA to net advances position was unchanged at 0.34 per cent.
Total deposits increased by 9 per cent to stand at ₹2,77,657 crore as on Marchend 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 14.44 per cent to stand at ₹1,96,894 crore as of March 31, with structured retail advances (housing/ property, auto, education and personal loans) growing at 11.68 per cent; non-structured retail advances (gold loan, agriculture, MSME, bulk/centralised business and other retail) were up 26.56 per cent; and corporate advances 8.77 per cent.