IDBI Bank Q4: Private Lender's Net Profit Rises 64 Per Cent To Rs 1,133 Crore

In an exchange filing, IDBI Bank also reported that its net interest income for the March quarter stood at Rs 3,279.6 crore, representing a 35.3 per cent rise compared to the same period last year.

For FY23, IDBI Bank's net profit grew by 49 per cent to Rs 3,645 crore as against Rs 2,439 crore for FY22.

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IDBI Bank on Saturday reported that its standalone net profit for the March quarter jumped by 64.1 per cent to Rs 1,133 crore, compared to Rs 691 crore in the same period last year. Compared to the third quarter the profit increased by 22.2 per cent from Rs 927 crore in December 2022. 

In an exchange filing, IDBI Bank also reported that its net interest income (NII) for the March quarter stood at Rs 3,279.6 crore, representing a 35.3 per cent increase from Rs 2,420.5 crore in the same period of the previous fiscal year.

For FY23, the net profit grew by 49 per cent to Rs 3,645 crore as against Rs 2,439 crore for FY22.

Along with the announcement of Q4 results, IDBI Bank's board of directors recommended a dividend of Rs 1 per equity share of the face value of Rs 10 each of FY23, subject to approval by the shareholders, as per an exchange filing. The bank officials have said that this is the first dividend proposal in eight years.

IDBI Bank's capital adequacy ratio (CAR), which indicates the bank's ability to meet its obligations, improved to 20.44 per cent from 19.06 per cent year-over-year and 20.14 per cent quarter-over-quarter. The bank reported provisions of Rs 983.63 crore, up 26 per cent quarter-over-quarter and 47 per cent year-over-year.

The bank's asset quality improved significantly, with gross non-performing assets (NPAs) declining to 6.38 per cent from 13.82 per cent in the previous quarter. The net NPA ratio also improved to 0.92 per cent from 1.08 per cent in the previous quarter.

Its capital adequacy ratio stood at 20.44 per cent with a Common Equity Tier of 18.08 per cent at the end of March 2023.

In the financial year ended March 2023, advances at the bank increased by 19 per cent year-over-year to reach Rs 162,568 crore, while total deposits grew by 10 per cent year-over-year to Rs 255,499 crore.

The proportion of low-cost funds in the form of current and savings accounts (CASA) in the total deposits declined to 53.02 per cent as of March 2023, compared to 56.77 per cent in the previous year.