|
IDBI
Bank has reported 57% growth in net profit at Rs 1458.18 crore for the
quarter ended December 2023 (Q3FY2024). The bank has posted healthy 17% growth
in net interest income (NII), while the core fee income of the bank rose at
moderate pace of 2% in Q3FY2024. The Net Interest Margin (NIM) of the bank
improved to 4.72% in Q3FY2024 compared to 4.59% in the corresponding quarter of
previous year.
On business front, the bank as has posted 10% growth in business
with 7% rise in loan book. The asset quality of the bank has improved further in
Q3FY2024. Bank has witnessed decline in credit to deposit ratio to 70.8% at end
December 2023 from 73.2% at end December 2022. The CASA ratio of the bank has eased
to 49.9% at end December 2023 from 54.4% at end December 2022.
Asset quality improves: The bank has continued
to improve asset quality in Q3FY2024.
The fresh slippages of loans stood at Rs 614 crore in Q3FY2024
compared with 491 crore in previous quarter and Rs 1011 crore in the
corresponding quarter last year.
The recoveries of NPAs stood at Rs 198 crore, upgradations at Rs 156
crore and the write-off of loans was at Rs 316 crore in Q3FY2024.
Provision coverage ratio was robust at 99.17% at end December 2023
compared to 99.10% a quarter ago and 98.00% a year ago
The capital adequacy ratio of the bank stood at 20.3% with Tier I
ratio at 18.0% at end December 2023.
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Asset Quality Indicators: IDBI Bank
|
|
|
Dec-23
|
Sep-23
|
Jun-23
|
Mar-23
|
Dec-22
|
Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
8589.40
|
8645.23
|
8762.51
|
10969.29
|
23535.06
|
-1
|
-22
|
-64
|
|
Net NPA (Rs Crore)
|
593.34
|
651.01
|
730.60
|
1494.74
|
1595.63
|
-9
|
-60
|
-63
|
|
% Gross NPA
|
4.69
|
4.90
|
5.05
|
6.38
|
13.82
|
-21
|
-169
|
-913
|
|
% Net NPA
|
0.34
|
0.39
|
0.44
|
0.92
|
1.08
|
-5
|
-58
|
-74
|
|
% PCR
|
99.17
|
99.10
|
98.99
|
97.94
|
98.00
|
7
|
123
|
117
|
|
% CRAR - Basel III
|
20.32
|
21.26
|
20.33
|
20.44
|
20.14
|
-94
|
-12
|
18
|
|
% CRAR - Tier I - Basel III
|
18.04
|
18.86
|
17.93
|
18.08
|
17.60
|
-82
|
-4
|
44
|
|
Variation in basis points for figures given in percentages and
in % for figures in Rs crore
|
Business Highlights:
Double digit business growth: The
business of the bank has increased 10% YoY to Rs 441522 crore end December
2023, driven by 7% rise in advances to Rs 182997 crore. Deposits rose 11% to Rs
258525 crore at end December 2023.
CASA deposits ratio declines: The CASA
deposits of the bank rose 2% YoY to Rs 128962 crore at end December 2023. The
current account deposits fell 1% to Rs 43182 crore, while saving account
deposits increased 3% to Rs 85780 crore end December 2023. The CASA ratio
declined to 49.9% at end December 2023 compared to 54.4% at end December 2022,
while eased from 51.5% a quarter ago.
The term deposits have increased 22% to Rs 129563 crore end
December 2023.
Strong retail loan growth: Advances growth
was driven by retail loans rising 18% YoY to Rs 104308 crore at end December
2023, while credit to MSME rose 7% to Rs 14640 crore at end December 2023. However.
the corporate credit has declined 6% to Rs 53069 crore and to agriculture fell 8%
to Rs 10980 crore end December 2023.
Investment book of the bank surged 25% YoY to Rs 116437 crore at end December
2023. The AFS book jumped 65% to Rs 40262 crore, while HTM book rose 9% to Rs
71094 crore at end December 2023. The duration of the overall investment
portfolio stood at 3.68 years end December 2023 compared with 4.05 years at end
December 2022.
Margins improve: The bank has
showed 90 bps YoY jump in cost of deposits to 4.34%, while yield on advances
increased 120 bps YoY to 10.47% in Q3FY2024. Thus, the NIM has improved 13 bps
YoY to 4.72%.
Book value of the bank stood at Rs 37.2
per share at end December 2023, while the adjusted book value (net of NNPA and
10% of restructured advances) was Rs 36.5 per share at end December 2023.
Quarterly Performance
NII rises as NIM improves: Bank has
recorded 25% increase in the interest earned at Rs 6540.86 crore, while
interest expenses increased 35% to Rs 3106.39 crore in Q3FY2024. NII improved
17% to Rs 3434.47 crore in the quarter ended December 2023.
Moderate fee income growth: Bank has
posted 2% growth in core fee income to Rs 484 crore, while the recoveries increased
12% to Rs 91 crore and the treasury income surged 148% to Rs 305 crore. Forex
income has declined 46% to Rs 84 crore.
Expense ratio rises: The operating
expenses of the bank increased 20% to Rs 2081.33 crore, as other expenses moved
up 7% to Rs 988.55 crore, while employee expenses increased 35% to Rs 1092.78
crore in Q3FY2024. Cost to income ratio rose to 47.2% in Q3FY2024 compared with
45.8% in Q3FY2023, helping the Operating Profit to increase 13% to Rs 2326.55
crore.
Provisions and contingencies decline: The bank has showed 59% decline in provisions to Rs 319.85 crore.
The bank has written back loan loss provisions of Rs 17 crore and standard
asset provisions of Rs 96 crore. However, the investment provisions rebounded to
Rs 295 crore and other provisions fell 281% to Rs 137 crore.
Effective tax rate rose to 27.3% in Q3FY2024 from 26.8% in Q3FY2023. Net
Profit jumped 57% YoY to Rs 1458.18 crore during quarter ended December 2023.
Financial Performance 9MFY2024:
Bank has posted 59% increase in net profit to Rs 4005.63 crore in
the nine month ended December 2023 (9MFY2024). The net interest income
increased 29% to Rs 10498.55 crore, while non-interest income rose 12% to Rs
2714.74 crore. Net total income increased 18% to Rs 13213.29 crore in 9MFY2024.
The operating expenses increased 18% to Rs 5796.35 crore, while provision and
contingencies dipped 49% to Rs 1282.82 crore, allowing profit before tax to
increase 62% to Rs 6134.12 crore in 9MFY2024. The cost-to-income ratio was
steady at 43.9% in 9MFY2024 compared to 43.8% in 9MFY2023. An effective tax
rate rose to 34.7% in 9MFY2024 compared to 33.8% in 9MFY2023. The net profit
has increased 59% to Rs 4005.63 crore in 9MFY2024.
|
IDBI
Bank: Results
|
|
Particulars
|
2312
(3)
|
2212
(3)
|
Var %
|
2312
(9)
|
2212
(9)
|
Var %
|
2303
(12)
|
2203
(12)
|
Var %
|
|
Interest Earned
|
6540.86
|
5231.44
|
25
|
19435.66
|
14843.61
|
31
|
20569.78
|
18291.90
|
12
|
|
Interest Expended
|
3106.39
|
2306.09
|
35
|
8937.11
|
6692.64
|
34
|
9139.23
|
9129.41
|
0
|
|
Net Interest Income
|
3434.47
|
2925.35
|
17
|
10498.55
|
8150.97
|
29
|
11430.55
|
9162.49
|
25
|
|
Other Income
|
973.41
|
856.87
|
14
|
2714.74
|
3084.32
|
-12
|
4371.98
|
4689.90
|
-7
|
|
Net Total Income
|
4407.88
|
3782.22
|
17
|
13213.29
|
11235.29
|
18
|
15802.53
|
13852.39
|
14
|
|
Operating Expenses
|
2081.33
|
1730.85
|
20
|
5796.35
|
4924.43
|
18
|
7066.70
|
6357.23
|
11
|
|
Operating Profits
|
2326.55
|
2051.37
|
13
|
7416.94
|
6310.86
|
18
|
8735.83
|
7495.16
|
17
|
|
Provisions & Contingencies
|
319.85
|
784.28
|
-59
|
1282.82
|
2514.23
|
-49
|
3497.86
|
3886.54
|
-10
|
|
Profit Before Tax
|
2006.70
|
1267.09
|
58
|
6134.12
|
3796.63
|
62
|
5237.97
|
3608.62
|
45
|
|
EO
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
|
PBT after EO
|
2006.70
|
1267.09
|
58
|
6134.12
|
3796.63
|
62
|
5237.97
|
3608.62
|
45
|
|
Provision for tax
|
548.52
|
339.82
|
61
|
2128.49
|
1284.91
|
66
|
1592.88
|
1169.35
|
36
|
|
PAT
|
1458.18
|
927.27
|
57
|
4005.63
|
2511.72
|
59
|
3645.09
|
2439.27
|
49
|
|
EPS*(Rs)
|
5.4
|
3.4
|
|
5.0
|
3.1
|
|
3.4
|
2.3
|
|
|
Adj BV (Rs)
|
36.5
|
31.3
|
|
36.5
|
31.3
|
|
32.9
|
28.5
|
|
|
*
Annualized on current equity of Rs 10752.4 crore. Face Value: Rs 10, Figures
in Rs crore
|
|
Source:
Capitaline Corporate Database
|
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