IDBI Q3FY22 Results Mumbai/UNI: Private sector lender IDBI Bank on Friday reported a 53 percent increase in standalone net profit for the quarter ended December 31, 2021 at Rs 578 crore on the back of higher net interest income.
The Life Insurance Corporation promoted bank had reported a PAT of Rs 378.42 crore in the corresponding quarter last fiscal.
Its total income, however, fell to Rs 5772.86 crore during the period under review as compared to Rs 6003.91 crore in Q3 FY2021.
The bank's net interest income (NII) rose by 31 percent to Rs 2383 crore during the October-December period from Rs 1817 crore, a year-ago.
Net interest margin (NIM) improved by 101 bps to 3.88 percent for Q3 FY2022 as compared to 2.87 percent for Q3 FY2021.
"Despite a challenging position created by the Covid-19 pandemic, the bank has shown persistent growth and improvement in the financials.
The profit has shown a robust growth of 53 percent," bank's CEO and Managing Director Rakesh Sharma told reporters in a conference call.
The bank reported an improvement in its stressed assets ratio with gross non-performing assets coming down to 20.56 percent of gross loans as on December 31, 2021, as against 23.52 percent in Q3 FY2021. Its net NPA improved to 1.70 percent from 1.94 percent a year ago.
"There has been an improvement in our recoveries. At the beginning of the year, we had guided recoveries to the tune of Rs 5000 crore. Out of this, we have already shown recoveries of around Rs 4334 crore and we are hopeful that we will meet the targets. It is our endeavour to bring down our gross NPA to 17 percent by the end of this fiscal and further to 12 percent by the next fiscal," he said.
The slippage up to December 31, 2020 were Rs 1294 crore, while the slippage ratio for the nine months was at 2.8 percent.
The bank's CASA improved 11 percent to Rs 1,21,738 crore as on December 31, 2021 as against Rs 1,09,880 crore as on December 31, 2020.
The composition of advances portfolio of corporate versus retail was realigned to 37:63 as on December 31, 2021 as against 40:60 as on December 31, 2020, the lender said.
Sharma said the bank is hoping to increase the share of its corporate portfolio going forward to nearly 45 percent to maintain a reasonable, sustainable and calibrated growth.
"For the first time in the last four years, there has been an improvement in the share of the corporate segment in our composition of advances portfolio. When we came out of PCA (prompt corrective action), we had indicated that the composition ration would be 55:45 with retail having the higher share. Today we are more than 60 percent in the retail segment. We are targeting mid-corporates (having a turnover of around Rs 750 crore) to improve the ratio. We are taking calibrated steps to target quality advances," Sharma added.
The bank's provision for bad loans and contingencies stood at Rs 801.81 crore as of December 31, 2021, as compared to Rs 867.97 crore, a year-ago.
As of December 31, 2021, the bank had Covid-19 related provisions of Rs 863 crore, other than provisions held for restructuring under the pandemic norms.
The bank has also identified Rs 11,000 crore worth assets (loans) to be transferred to the National Asset Reconstruction Company (NARC).
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