IDBI Bank reports 60% surge in Q2 net profit; shares give up early gains

IDBI Bank shares have given investors 48.9 percent returns in one year.

IDBI Bank shares traded in the red after gaining 2 percent in early trade as the lender reported a net profit of Rs 1,323 crore, up 60 percent year-on-year, for the second quarter ended September on the back of a fall in bad loans.

The bank clocked a total income of Rs 6,924 crore in the second quarter of the current fiscal year, compared to Rs 6,066 crore in the corresponding quarter in the previous financial year.

The interest income grew to Rs 6,035 crore in Q2FY24 from Rs 4,978 crore in the same period a year ago.

IDBI Bank saw an improvement in its asset quality as the gross non-performing assets (NPAs) stood at 4.90 percent of the gross advances, a significant drop from the 16.51 percent recorded at the end of September 2022.

Its net NPAs fell to 0.39 percent from 1.15 percent on-year.

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As of 9.36 a.m., the shares of the lender were trading at Rs 66.45 on the NSE, lower by 0.75 percent. From its intraday high of Rs 68.85, IDBI Bank’s stock price has fallen 3.6 percent.

IDBI Bank shareholding, stock price movement

Compared to Nifty 50's one-year run at 11.3 percent, IDBI Bank shares have given investors 48.9 percent returns during the same time period. Over the past six months, shares have risen 29.48 percent.

The scrip is trading under its 5-, 10-, and 20-DMAs, but is above its longer-term EMAs of 50-, 100-, and 200-DMAs.

As of the September quarter shareholding, the promoters of the lender are LIC and the Centre who own 94.71 percent together. FIIs and DIIs own 0.4 and 0.3 percent respectively, while the public has a 4.6 percent stake in the firm.

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