IDBI Bank Q2 Result | Profit jumps 46% to Rs 828 crore, NII grows 48% but provisions rise sharply

IDBI Bank

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IDBI Bank on October 21 clocked a massive 46 percent year-on-year growth in standalone profit for the quarter ended September 30, despite jump in provisions, backed by healthy NII growth and operating performance.

Standalone profit increased to Rs 828 crore during the quarter, up from Rs 567 crore in corresponding period last fiscal. The sequential growth in profit was 10 percent.

Net interest income, the difference between interest earned and interest expended, grew by 47.7 percent to Rs 2,738 crore for Q2FY23, with net interest margin expanding by 135 bps YoY to 4.37 percent for the quarter, the bank said in its BSE filing. Sequentially, NIM expanded 35 bps.

The bank reported net advances for the quarter at Rs 1.46 lakh crore, up 17 percent YoY and deposits at Rs 2.3 lakh crore, up 3 percent YoY.

The cost-to-income ratio saw significant reduction, down by more than 10 percentage points YoY and over 1 percentage point QoQ to 42.29 percent, the bank said.

Asset quality performance for the second quarter of FY23 also improved, with gross non-performing assets (NPA) as a percentage of gross advances falling more than 3 percentage points to 16.51 percent compared to previous quarter, and the net NPA fell by 10 bps to 1.15 percent as of September FY23.

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IDBI Bank said the provisions and contingencies increased significantly by 77 percent YoY to Rs 1,380 crore in Q2FY23, and the sequential increase was 7 percent, while the provision coverage ratio improved by 56 bps YoY (up 7 bps QoQ) to 97.86 percent as of September FY23.

Pre-provision operating profit saw a massive 64 percent year-on-year growth at Rs 2,207.7 crore, and other income (non-interest income) grew by 11.4 percent to Rs 1,087.3 crore during the July-September FY23 period.

Also read - ICICI Bank Q2 Preview | Net profit to jump 34%, margins to improve

IDBI Bank shares corrected 1.89 percent to trade at Rs 44.10 per share at 2.52 pm on the BSE.