IDBI Bank Q2FY25 net profit jumps 39% YoY to Rs 1,836 cr; NII grows 26%
Mumbai: IDBI Bank reported a significant increase in its net profit, which surged by 39% to Rs 1,836 crore compared to Rs 1,323 crore in Q2 FY24.
The bank’s operating profit also saw a robust 45% growth, reaching Rs 3,006 crore from Rs 2,072 crore in the same period last year.
Net Interest Income (NII) rose by 26% to Rs 3,875 crore from Rs 3,066 crore in Q2 FY24, while the Net Interest Margin (NIM) improved by 54 basis points to 4.87% from 4.33%.
Additionally, IDBI Bank’s cost-to-income ratio reduced significantly by 558 basis points to 42.05% in Q2 FY25, compared to 47.63% a year ago.
The bank’s cost of deposit stood at 4.66%, up from 4.22%, and the cost of funds was 4.87%, up from 4.49%.
In terms of business growth, IDBI Bank’s total deposits rose to Rs 2,77,602 crore as of September 30, 2024, marking an 11% year-over-year growth from Rs 2,49,434 crore in September 2023.
Current Account Savings Account (CASA) deposits grew by 4.03% year-over-year to Rs 1,33,639 crore, with the CASA ratio standing at 48.14%.
Net advances also increased, registering a 19% growth year-over-year, totaling Rs 2,00,944 crore as of September 30, 2024.
The bank’s gross advances portfolio maintained a corporate-to-retail composition of 29:71, slightly shifting from 30:70 in the previous year.
IDBI Bank’s asset quality improved substantially in Q2 FY25.
The Gross Non-Performing Assets (NPA) ratio declined to 3.68%, compared to 4.90% a year ago, while the Net NPA ratio dropped to 0.20% from 0.39%.
Furthermore, the Provision Coverage Ratio (PCR), including technical write-offs, improved to 99.42% from 99.10% as of September 30, 2023.
The bank’s capital position strengthened, with Tier 1 capital rising to 19.89% from 18.86% year-over-year.
The Capital to Risk (Weighted) Assets Ratio (CRAR) improved to 21.98% as of September 30, 2024, up from 21.26%.
IDBI Bank’s Risk Weighted Assets (RWA) increased to Rs 1,84,335 crore from Rs 1,61,618 crore in the previous year.
Among recent developments, IDBI Bank’s Long-Term Credit Rating was upgraded to ‘AA/Stable’ from ‘AA-/Stable’, and its Short-Term Credit Rating was reaffirmed at ‘A1+’ by ICRA, CRISIL, CARE, and India Rating, reflecting an enhancement in the bank’s creditworthiness.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
Related Articles
CRR cut, AI ethics push, and SORR benchmark: Experts hail RBI’s pragmatic policy moves
Mumbai: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% while the cash reserve ratio (CRR) has been slashed by 50 basis points to 4 percent, media reports said.
JP Morgan gives 'overweight' rating to Adani Group bonds
Mumbai: US investment bank JP Morgan has assigned an 'overweight' rating to four bonds issued by the Adani Group, citing the group's capacity to scale and grow through internal cash flows, which reduces the likelihood of credit stress.
LG Electronics files DRPH with SEBI; IPO size expected to be over RS 15,000 cr
Mumbai: South Korean electronics giant LG Electronics has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Friday for the proposed public listing of its Indian business, according to a notification on the Bombay Stock Exchange (BSE).
De-dollarisation not on India's agenda; derisking domestic trade is: RBI Governor Shaktikanta Das
Mumbai: India has not initiated any steps towards de-dollarisation and is solely focused on mitigating risks to domestic trade from geopolitical uncertainties, Reserve Bank of India (RBI) Governor Shaktikanta Das clarified on Friday, media reports said.
Latest News
Been a minute: Virat Kohli, Anushka Sharma's heart-warming picture is leaving internet buzzing
Been a minute: Virat Kohli, Anushka Sharma's heart-warming picture is leaving internet buzzing
India launches Integrated State and City Logistics Plans to boost efficiency
India launches Integrated State and City Logistics Plans to boost efficiency
