IDBI Bank Q4 results: Net profit jumps 44% YoY at ₹1,628 crore, NII up 12% | Key highlights
Upstox
3 min read • Updated: May 4, 2024, 3:47 PM
Summary
IDBI Bank Q4 results: The state-run lender said its board of directors have recommended a “dividend of ₹1.5 per equity share” of face value of ₹10 each for FY24. The record date and the payout timeline were not shared.
IDBI Bank posted a 43.7% year-on-year surge in net profit at ₹1,628.5 crore in the fourth quarter of financial year 2023-24 (Q4FY24), a regulatory filing showed on Saturday, May 4. In the year-ago quarter, the net profit stood at ₹1,133 crore.
The state-run lender’s net interest income (NII) – the difference between interest earned on loans and advances and interest paid on deposits – increased by 12% year-on-year to ₹3,688 crore, as against ₹3,280 crore in Q4FY23.
In the full fiscal year-ended March 31, 2024, the net profit climbed to an all-time high of ₹5,634 crore, up 55% as against the preceding year, IDBI Bank said.
Asset quality improves
The gross non-performing assets (NPA) ratio improved to 4.53% as on March 31, 2024 as against 6.38% in the year-ago period. It also improved sequentially, as the gross NPA at the end of December 2023 quarter was 4.69%.
The net NPA ratio improved to 0.34% at the end of Q4FY24, as compared to 0.92% in the year-ago period. Sequentially, the net NPA remained unchanged.
Dividend declared
IDBI Bank said its board of directors have recommended a “dividend of ₹1.50 per equity share” of face value of ₹10 each for FY24. The record date, to determine the eligible shareholders, and the payout timeline were not shared by the lender.
“The dividend on equity shares, will be paid/dispatched on or after the same is approved by the shareholders at the ensuing Annual General Meeting (AGM),” it said.
Deposits grow
Total deposits increased to ₹2,77,657 crore at the end of the March 2024 quarter, as compared to ₹2,55,490 crore in the year-ago period.
The current account and savings account (CASA) ratio stood at 50.4% during the quarter under review, as against a ratio of 53.02% at the end of Q4FY23.
“Net advances grew by 16% YoY to ₹1,88,621 crore as on March 31, 2024 as against ₹1,62,568 as on March 31, 2023,” IDBI Bank added in a release. The composition of corporate versus retail in gross advances portfolio stood at 30:70 at the end of Q4FY24, it added.
Other key metrics
Sharing some of the other key metrics, the bank said its return on assets (ROA) improved by 39 basis points to 1.82% in Q4FY24, as compared to 1.43% in Q4FY23.
Cost of deposit, which is the cost incurred as interest paid to deposit holders, stood at 4.48% in the March 2024 quarter, higher from 3.71% in the year-ago period.
Meanwhile, the cost of funds – the expenditure incurred on acquiring money to issue loans – increased to 4.74% in Q4FY24 as compared to 3.96% in Q4FY23.
The lender also noted that its risk weighted assets (RWA) stood at ₹1,76,531 crore as on March 31, 2024, increasing from ₹1,63,719 crore as on March 31, 2023.
Shares of IDBI settled 1.87% lower at ₹89.4 apiece on the NSE on May 3.