IDBI Bank Q1 Results: Net Profit Surges 62%, Asset Quality Improves
IDBI Bank disclosed its financial results for the April-June FY24 quarter on July 24, showing a significant 62 percent increase in net profit to Rs 1,224 crore compared to Rs 756 crore in the corresponding quarter of the previous year.
The bank’s Net Interest Income (NII) experienced robust growth, reaching Rs 3,998 crore, up 61 percent YoY from Rs 2,448 crore.
The net interest margin (NIM) also saw a noteworthy improvement, rising by 178 basis points to 5.8 percent for Q1-2024, as opposed to 4.02 percent in Q1-2023.
A major achievement for IDBI Bank was the substantial reduction in gross non-performing assets (GNPA) to 5 percent, a significant drop from the 20 percent reported last year. Similarly, net non-performing assets (NNPA) decreased to 0.44 percent from 1.26 percent during the same period.
On the National Stock Exchange (NSE), the bank’s stock was trading at Rs 58.70 at 2:47 pm, marking a 2.19 percent increase from the previous close.
As of June 30, 2023, the bank’s Current account and savings account (CASA) balances reached Rs 1.28 lakh crore, with a CASA ratio of 52.61 percent.
IDBI Bank’s net advances also demonstrated positive growth, increasing by 20 percent YoY to Rs 1.65 lakh crore as of June 30, 2023, compared to Rs 1.38 lakh crore on June 30, 2022.
In terms of revenue from different segments, the corporate and wholesale segment reported a revenue of Rs 2,696 crore, a significant jump from Rs 1,264 crore in the corresponding quarter of the previous year.
The retail banking segment, a major revenue driver for the bank, recorded a revenue of Rs 7,106 crore, up from Rs 5,656 crore last year.
Additionally, the Treasury segment’s revenue surged to Rs 3,280 crore, showing substantial growth from the Rs 2,428 crore reported in the previous year.
Summary
IDBI Bank reported a 62 percent increase in net profit for the April-June FY24 quarter. Net Interest Income (NII) grew by 61 percent YoY, and the gross non-performing assets (GNPA) declined to 5 percent from 20 percent last year. Current account and savings account (CASA) increased to Rs 1.28 lakh crore, and net advances grew by 20 percent YoY. Retail banking and Treasury segment showed notable revenue growth.
