IDBI Bank Q2 net profit zooms ~38% y-o-y to ₹1,837 Crore

25 Oct 2024 , 04:40 PM

On Friday (October 25), IDBI Bank Ltd reported a 38.3% YoY increase in net profit of ₹1,836.5 Crore for the quarter ended September 30, 2024. In the preceding fiscal quarter, IDBI Bank reported a net profit of ₹1,323 Crore, according to a regulatory filing.

Net interest income (NII), which is the difference between the interest revenue a bank receives from its lending activities and the interest it pays to depositors, soared 26%, reaching ₹3,876 Crore from ₹3,067 Crore in the equivalent quarter of FY24.

The gross non-performing asset (GNPA) ratio was 3.68% in the March quarter, compared to 3.87% in the December quarter. Net NPA was 0.20%, compared to 0.23% in the previous quarter.

Gross NPA increased to ₹7,653.1 Crore from ₹7,795.4 Crore in the previous quarter, but net NPA decreased to ₹401.6 Crore from ₹453.6 Crore.

IDBI Bank reported a 45% increase in operating profit for Q2 FY2025, hitting ₹3,006 Crore from ₹2,072 Crore in Q2 FY2024. The Net Interest Margin (NIM) also improved significantly, rising 54 basis points to 4.87% from 4.33% in the same time last year.

Furthermore, the bank’s cost-to-income ratio declined by 558 basis points to 42.05%, down from 47.63%, indicating improved operational efficiency. The bank’s cost indicators have climbed substantially, with the Cost of Deposit increasing to 4.66% in Q2 FY2025 from 4.22% in Q2 FY2024. Similarly, the cost of funds climbed from 4.49% to 4.87% year on year.

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