IDBI Bank Q2 Results | Net profit jumps 38% to ₹1,837 crore, NII surges 26% to ₹3,876 crore
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, surged 26%, coming at ₹3,876 crore against ₹3,067 crore in the corresponding quarter of FY24.
The gross non-performing asset (GNPA) stood at 3.68% in the September quarter against 3.87% in the June quarter. Net NPA came at 0.20% against 0.23% quarter-on-quarter.
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In monetary terms, gross NPA stood at ₹7,653.1 crore against ₹7,795.4 crore quarter-on-quarter, whereas net NPA came at ₹401.6 crore against ₹453.6 crore quarter-on-quarter.
IDBI Bank reported a 45% rise in operating profit for Q2 FY2025, reaching ₹3,006 crore compared to ₹2,072 crore in Q2 FY2024. The Net Interest Margin (NIM) also saw a robust improvement, increasing by 54 basis points to 4.87% from 4.33% during the same period last year.
Additionally, the bank’s Cost to Income ratio fell by 558 basis points to 42.05%, down from 47.63%, reflecting enhanced operational efficiency. The bank’s cost metrics have risen moderately, with the Cost of Deposit reaching 4.66% in Q2 FY2025 from 4.22% in Q2 FY2024. Similarly, the Cost of Funds increased to 4.87% from 4.49% on a year-over-year basis.
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IDBI Bank reported an 11% increase in total deposits, which stood at ₹2,77,602 crore as of September 30, 2024, compared to ₹2,49,434 crore a year earlier. CASA deposits rose to ₹1,33,639 crore, reflecting a 4.03% annual growth. The CASA ratio was at 48.14%, showcasing the bank’s solid retail deposit base.
Net advances grew by 19% year-over-year, totalling ₹2,00,944 crore as of September 30, 2024, against ₹1,68,502 crore in the previous year. The gross advances portfolio composition slightly shifted, with a corporate to retail split of 29:71, compared to 30:70 in Q2 FY2024.
The bank’s asset quality showed improvement, with the Gross NPA ratio declining to 3.68% as of September 30, 2024, from 4.90% a year prior. The Net NPA ratio also reduced to 0.20% from 0.39%. Provision Coverage Ratio (including Technical Write-Offs) rose to 99.42%, up from 99.10%, indicating strengthened risk mitigation.
IDBI Bank’s Tier 1 capital ratio improved to 19.89% as of September 30, 2024, from 18.86%, and the Capital to Risk-Weighted Assets Ratio (CRAR) increased to 21.98% from 21.26% year-over-year.
The bank’s Risk-Weighted Assets (RWA) stood at ₹1,84,335 crore, up from ₹1,61,618 crore as of September 30, 2023, demonstrating robust capital adequacy aligned with its expanding asset base. Shares of IDBI Bank Ltd ended at ₹82.80, up by ₹1.45, or 1.78% on the BSE.
