IDBI Bank Q1 Result: Bank's Net Profit Zooms 62 Per Cent, Gross NPA Down To 5 Per Cent

IDBI Bank clocked a 61 per cent growth in its net interest income (NII) from Rs 2,488 crore in Q1 FY23 to Rs 3,998 crores in Q1 FY24

IDBI Bank has signed a Memorandum of Understanding (MoU) with commercial vehicle manufacturer Ashok Leyland to provide financial solutions for its dealers. 

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IDBI Bank posted a 62 per cent increase in its net profit after tax on a year-on-year (YoY) basis in its first quarter (Q1) earnings on Monday. It logged a net profit of Rs 1,224 crores for the June quarter in the current financial year (FY24) against a net profit of Rs 756 crores in the first quarter of the previous fiscal year (FY23). The bank reported it's Gross Non-Performing Assets (GNPAs) at 5.05 per cent down from 19.9 per cent and Net Non-Performing Assets (NNPAs) at 0.44 per cent down from 1.26 per cent on a YoY basis.

NPAs are loans or advances issued by the bank which are subject to late repayment or unlikely to be repaid by the borrower in full. 

The lender clocked a 61 per cent growth in its net interest income (NII) from Rs 2,488 crore in Q1 FY23 to Rs 3,998 crores in Q1 FY24. NII is a reflector of interest earned by the bank after measuring the difference between the interest borrowers pay to the bank and the interest paid by the bank to its depositors. 

Segment-wise, the bank reported a revenue of Rs 2,696 crore for the corporate and wholesale sector in Q1 FY24 against Rs 1264 crore in Q1 FY23. Retail banking formed the major contributor to the bank’s revenue at Rs 7,106 crore in the reported quarter against Rs 5,656 crore on a YoY basis. Treasury segment logged a revenue of Rs 3,280 crore, up from Rs 2,428 crore, on a YoY basis. 

Provisions for the bank increased from Rs 959.2 crore in Q1 FY23 to Rs 1,190 crore in the reported quarter. Provisions are set amounts maintained by the bank to cover probable losses on bad assets. The bank in its regulatory filing mentioned that it has signed a Memorandum of Understanding (MoU) with commercial vehicle manufacturer Ashok Leyland to provide financial solutions for its dealers. 

Shares of IDBI closed at Rs 57.8 apiece on the BSE on Monday.