IDBI Bank's Q2 net profit surges by 60%, but shares down 2%

23 Oct 2023 , 12:26 PM

After rising 2% in early trading, IDBI Bank’s shares fell as the lender revealed a net profit of Rs 1,323 crore for the second quarter that ended in September, increasing 60% year over year thanks to a decline in bad loans.

In the second quarter of the current fiscal year, the bank recorded a total income of Rs 6,924 crore, up from Rs 6,066 crore in the same quarter of the previous financial year.

From Rs 4,978 crore during the same period last year to Rs 6,035 crore in Q2FY24, interest income increased.

The gross non-performing assets (NPAs) of IDBI Bank decreased significantly from 16.51% at the end of September 2022 to 4.90% of gross loans, indicating an improvement in the bank’s asset quality.

From 1.15% on an annual basis, its net non-performing assets (NPAs) decreased to 0.39%.

The promoters of the lender are the Centre and LIC, who jointly own 94.71% of the shares as of the September quarter. The public owns 4.6% of the company, while FIIs and DIIs own 0.4% and 0.3%, respectively.

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