IDBI Bank IDBI Bank on Friday reported a huge 46 percent year-on-year growth in standalone profit for the quarter ended September 30, despite a jump in provisions.
Standalone profit increased to Rs 828 crore during the quarter, up from Rs 567 crore in the same period last fiscal. The quarter-on-quarter growth in profit was 10 percent.
Net interest income, calculated by deducting interest expended from interest earned, jumped 47.7 percent to Rs 2,738 crore for Q2FY23, with net interest margin expanding by 135 bps YoY to 4.37 percent for the quarter, the bank said in its BSE filing.
Compared to Q1FY23, NIM or Net Interest Margin grew 35 bps.
The bank reported net advances for the quarter at Rs 1.46 lakh crore, up 17 percent YoY, and deposits at Rs 2.3 lakh crore, up 3 percent compared to the same quarter last fiscal.
The cost-to-income ratio saw a sizeable reduction, down by over 10 percentage points YoY and over 1 percentage point QoQ to 42.29 percent, the bank said.
Asset quality performance for the second quarter of FY23 also improved.
Its gross non-performing assets (NPA) dropped more than 3 percentage points to 16.51 percent compared to previous quarter, and the net NPA fell by 10 bps to 1.15 percent as of September FY23.
Its provisions and contingencies increased significantly by 77 percent YoY to Rs 1,380 crore in Q2FY23.
Compared to the q1 the increase was 7 percent.
The provision coverage ratio bettered by 56 bps YoY (up 7 bps QoQ) to 97.86 percent as of September FY23.
Operating profit before provisions saw a massive 64 percent year-on-year growth at Rs 2,207.7 crore, and other income (non-interest income) grew by 11.4 percent to Rs 1,087.3 crore during the July-September FY23 period.
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