IDBI Bank Q3 PAT up 35.8% at Rs859cr on sharp fall in loan loss provisions

23 Jan 2022 , 06:20 PM

IDBI Bank Ltd reported 6.48% growth in total revenues for the Dec-21 quarter on consolidated basis at Rs4,121cr. On a sequential basis, the revenues were higher for the quarter by 11.13%.

During the quarter, the bank saw good traction in corporate banking while top line and operating profit in treasury and retail banking remained under stress.

IDBI Bank remains one of the contenders for an early strategic sale with both the government of India and LIC planning to exit their holdings in IDBI Bank.

The consolidated Profit after tax (PAT) for the Dec-21 quarter was up 55.75% at Rs612cr. In terms of operating performance while the corporate banking turned around to profit, the operating profits were lower for retail banking and treasury.

Provisions for bad loans were lower yoy but higher on sequential basis. Lower interest costs helped the boost in profits. However, gross NPAs at 20.56% is still too high, although net NPAs at 1.7% shows losses substantially provisioned. PAT margins were higher from 6.49% in Dec-20 to 10.49% in Dec-21 quarter.

Financial highlights for Dec-21 compared yoy and sequentially

	IDBI Bank
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 5,839	₹ 6,060	-3.64%	₹ 5,196	12.37%
Net Profit (Rs cr)	₹ 612	₹ 393	55.75%	₹ 589	4.04%
Diluted EPS (Rs)	₹ 0.57	₹ 0.38		₹ 0.55
Net Margins	10.49%	6.49%		11.33%