IDBI Bank on January 23 posted little above 60 percent growth in standalone profit at Rs 927.3 crore for the quarter ended December 2022, with improvement in asset quality and moderate fall in overall provisions. Lower tax expenses also aided the profitability.
Net interest income, the difference between interest earned and interest expended, grew nearly 23 percent to Rs 2,925 crore for the December quarter, with net interest margin rising 71 basis points on-year to 4.59 percent, the bank said in an exchange filing. The margin grew by 22 bps on a sequential basis.
Credit growth was strong for the quarter with advances rising 17.3 percent on-year to Rs 1.48 lakh crore, while deposits increased by 4.5 percent to Rs 2.32 lakh crore, compared to the year-ago period.
Total provisions and contingencies fell 2.2 percent on-year to Rs 784.3 crore, and provisions related to non-performing assets dropped significantly by 75 percent to Rs 232.8 crore for the October-December period of FY23, but the both remained elevated sequentially.
Asset quality improved for the quarter with gross non-performing assets as a percentage of gross advances falling 269 bps sequentially to 13.82 percent and net NPA dropped 8 bps QoQ to 1.07 percent.
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Non-interest income for the quarter at Rs 857 crore declined nearly 25 percent from a year-ago period, while pre-provision operating profit increased 16 percent to Rs 2,051.4 crore in the same period.
IDBI Bank said the total tax expenses for the quarter at Rs 340 crore fell by 12 percent over the last year .
The stock price traded at Rs 54.75 on the BSE, up a third of a percent over the previous day at 2:05pm.