IDBI Bank Q2 results: IDBI Bank records 39% jump in net profit, NII increases by 26%

IDBI Bank on Friday, October 25, reported a 38.78% rise in net profit at ₹1,836 crore for the second quarter of the current fiscal year (FY25) on the back of improvement in interest income, the bank said in a regulatory filing.

The bank, controlled by the Life Insurance Corporation of India, had posted a net profit of ₹1,323 crore in the previous year. Its total income increased to ₹8,754 crore in the quarter under review, from ₹6,924 crore in the same period a year ago.

The shares of IDBI Bank closed 1.78% up at ₹82.76 on the NSE on October 25. The market cap of the company stands at nearly ₹88,987 crore.

The bank’s net interest income, the difference between the interest banks earn from lending and pay to customers, improved to ₹3,875 crore in the July-September quarter, from ₹3,066 crore in the same quarter last year, registering a growth of 26%. Additionally, net interest margin increased to 4.87%, from 4.33% in the year-ago period.

Some notable highlights

• Asset quality of the bank observed an improvement as the gross non-performing assets (NPAs) rose to 3.68% of gross advances at the end Q2 FY25, as opposed to 4.90% a year ago.

• The Capital Adequacy Ratio of the bank increased to 21.98%, from 21.26% at the end of September 2023.

• The Provision Coverage Ratio, including Technical Write-Offs, increased to 99.42% at the end of Q2 FY25 from 99.10% in the same period of the previous year.

• The operating profit of the bank rose by 45% to ₹3,006 crore in Q2 FY25 as compared to ₹2,072 crore in Q2 FY24.

• The bank’s gross NPAs (Non-Performing Assets) were ₹7,653.1 crore, while the net NPAs were ₹401.6 crore.

• The cost-to-income ratio of the bank fell down to 42.05% from 47.63%.

• The bank’s total deposits increased to ₹2,77,602 crore, showing an 11% year-on-year growth, while the net advances grew by 19% to ₹2,00,944 crore.

• Risk-Weighted Assets of the bank stood at ₹1,84,335 crore, up from ₹1,61,618 crore in the previous year.