IDBI Bank reports increase in profit, supported by decline in provisions and contingencies, and sale of its stake
IDBI Bank reported a 25 per cent year-on-year (YoY) increase in standalone net profit at ₹756 crore in Q1 against ₹603 crore in the year ago period, supported by sharp decline in provisions and contingencies and sale of its entire stake in Asset Reconstruction Company (India) Ltd.
The net interest income declined a tad to ₹2,488 crore, while the non-interest income dipped 34 per cent YoY to ₹1,140 crore
Operating expenses, comprising employee expenses, and other operating expenses rose 15 per cent YoY to ₹1,576 crore.
Net interest margin improved to 4.02 per cent as at June-end 2022 against 3.97 per cent as at March-end 2022.
Gross non-performing assets/GNPAs (taking into account, the reduction of ₹1,216 crore and addition of ₹1,009 crore) declined by ₹207 crore during the quarter to stand at ₹33,908 crore as at June-end 2022.
GNPA position improved to 19.9 per cent as at June-end 2022, and the net NPA position improved to 1.25 per cent.
Provisions and contingencies, including for depreciation on investments, NPAs, standard assets, and restructured assets, declined by 48 per cent YoY to ₹959 crore.
During Q1, the Bank sold its entire stake (19.18 per cent) in Asset Reconstruction Company (India) Ltd to Avenue India Resurgence Pvt. Ltd for sale consideration of ₹361.48 crore, resulting in profit of ₹140.66 crore.
Gross advances and total deposits were up by 12 per cent YoY to ₹1,38,046 crore and one per cent YoY to ₹2,25,269 crore, respectively.
Published on
July 21, 2022
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