IDBI Bank on Wednesday reported a more than four-fold jump in standalone net profit to Rs 603.30 crore for the first quarter of the current financial year helped by a decline in bad loans.
The LIC-controlled private sector bank had posted a net profit of Rs 144.43 crore for April-June 2020-21.
Total income rose to Rs 6,554.95 crore during the period from Rs 5,901.02 crore in the same quarter of the last fiscal, IDBI Bank said in a regulatory filing.
The bank’s asset quality improved with gross non-performing assets (NPAs) falling to 22.71 percent of the gross advances as of June 30, 2021 from 26.81 percent by June 2020.
Net NPAs or bad loans came down to 1.67 percent from 3.55 percent.
The bank’s provisions for bad loans and contingencies stood at Rs 1,751.80 crore in the June quarter, up substantially from Rs 888.05 crore in the year-ago period.
Provision Coverage Ratio (including Technical Write-Offs) improved to 97.42 percent as on June 30, 2021 from 94.71 percent as on June 30, 2020.
Net Interest Income (NII) improved by 41 percent to Rs 2,506 crore as against Rs 1,772 crore same period a year ago.
At the same time, Net Interest Margin (NIM) rose by 125 basis points to 4.06 percent during the quarter as compared to 2.81 per cent in the Q1 of the previous fiscal.
As on June 30, 2021, the bank had COVID-19 related provisions of Rs 863 crore (other than provisions held for restructuring under COVID-19 norms).
The provision made by the bank is more than minimum required as per the RBI guidelines, it said.
IDBI Bank is progressing on realizing business synergies with LIC.
For the quarter, the bank has done a premium collection of Rs 32 crore for LIC and earned a fee income of Rs 5 crore, it said.
Apart from the above, the bank is providing cash management services, savings and current accounts to LIC and its employees and asset products, it added.On a consolidated basis, the bank had a net profit of Rs 598.13 crore in June 2021 quarter as against Rs 159.14 crore for the year-ago period.