IDBI Bank Q2FY25 net profit jumps 39% YoY to Rs 1,836 cr; NII grows 26%
Mumbai: IDBI Bank reported a significant increase in its net profit, which surged by 39% to Rs 1,836 crore compared to Rs 1,323 crore in Q2 FY24.
The bank’s operating profit also saw a robust 45% growth, reaching Rs 3,006 crore from Rs 2,072 crore in the same period last year.
Net Interest Income (NII) rose by 26% to Rs 3,875 crore from Rs 3,066 crore in Q2 FY24, while the Net Interest Margin (NIM) improved by 54 basis points to 4.87% from 4.33%.
Additionally, IDBI Bank’s cost-to-income ratio reduced significantly by 558 basis points to 42.05% in Q2 FY25, compared to 47.63% a year ago.
The bank’s cost of deposit stood at 4.66%, up from 4.22%, and the cost of funds was 4.87%, up from 4.49%.
In terms of business growth, IDBI Bank’s total deposits rose to Rs 2,77,602 crore as of September 30, 2024, marking an 11% year-over-year growth from Rs 2,49,434 crore in September 2023.
Current Account Savings Account (CASA) deposits grew by 4.03% year-over-year to Rs 1,33,639 crore, with the CASA ratio standing at 48.14%.
Net advances also increased, registering a 19% growth year-over-year, totaling Rs 2,00,944 crore as of September 30, 2024.
The bank’s gross advances portfolio maintained a corporate-to-retail composition of 29:71, slightly shifting from 30:70 in the previous year.
IDBI Bank’s asset quality improved substantially in Q2 FY25.
The Gross Non-Performing Assets (NPA) ratio declined to 3.68%, compared to 4.90% a year ago, while the Net NPA ratio dropped to 0.20% from 0.39%.
Furthermore, the Provision Coverage Ratio (PCR), including technical write-offs, improved to 99.42% from 99.10% as of September 30, 2023.
The bank’s capital position strengthened, with Tier 1 capital rising to 19.89% from 18.86% year-over-year.
The Capital to Risk (Weighted) Assets Ratio (CRAR) improved to 21.98% as of September 30, 2024, up from 21.26%.
IDBI Bank’s Risk Weighted Assets (RWA) increased to Rs 1,84,335 crore from Rs 1,61,618 crore in the previous year.
Among recent developments, IDBI Bank’s Long-Term Credit Rating was upgraded to ‘AA/Stable’ from ‘AA-/Stable’, and its Short-Term Credit Rating was reaffirmed at ‘A1+’ by ICRA, CRISIL, CARE, and India Rating, reflecting an enhancement in the bank’s creditworthiness.
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