IDBI back in black in FY21 after 5 years, posts profit of ₹1,359 cr

IN MARCH QUARTER, THE BANK REPORTED A NEARLY 4-FOLD JUMP IN ITS NET PROFIT TO ₹512 CRORE

NEW DELHI: LIC-controlled IDBI Bank turned profitable in the fiscal ended in March 2021 after five years, posting a net profit of ₹1,359 crore for the year.

In 2019-20, the lender had posted a net loss of ₹12,887 crore. IDBI Bank is back in black after five years, said the lender.

In the last quarter of the fiscal year 2020-21, the bank reported a nearly four-fold jump in its net profit to ₹512 crore, IDBI Bank said in a release.

The bank had posted a profit of ₹135 crore in the year-ago quarter.

The bank, which came out of the RBI’s prompt corrective action (PCA) framework earlier in March this year, said its turnaround strategies led to the transformation.

Total income during Q4FY21 rose to ₹6,969.59 crore from ₹6,924.94 crore in the same period of 2019-20.

The full year income, however, was down at ₹24,557 crore as against ₹25,295 crore.

Gross NPA (non-performing asset) ratio improved to 22.37% as on March 31, 2021 as against 27.53% in the year-ago period. Net NPA improved to 1.97% from 4.19%, IDBI Bank said.

The bank said its recovery from technically written off accounts improved to ₹269 crore in Q4FY21 as against ₹105 crore in the third quarter 2020-21.

Provisions for bad loans and contingencies were raised to ₹2,457 crore during the reported quarter as against ₹1,584 crore.

The bank said it has made Covid-related provisions of ₹363 crore at the end of March 2021.

IDBI Bank shares traded at ₹36.25 on BSE, up 2.69% from the previous close.