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IDBI
Bank has reported 44% growth in net profit at Rs 1628.46 crore for the
quarter ended March 2024 (Q4FY2024). The bank has posted healthy 12% growth in
net interest income (NII), while the core fee income of the bank also improved 10%
in Q4FY2024. The Net Interest Margin (NIM) of the bank was strong at 4.91% in
Q4FY2024 compared to 5.01% in the corresponding quarter of previous year.
On business front, the bank as has posted 11% growth in business
with strong 14% surge in loan book. The asset quality of the bank was stable in
Q4FY2024. Bank has substantially improved the credit to deposit ratio to 70.9% at
end March 2024 from 67.3% at end March 2023. However, the CASA ratio of the
bank has declined to 50.4% at end March 2024 from 53.0% at end March 2023.
Asset quality improves: The bank has exhibited
an improvement in the asset quality in Q4FY2024.
The fresh slippages of loans increased to Rs 1852 crore in
Q4FY2024 compared with 614 crore in previous quarter and Rs 862 crore in the
corresponding quarter last year.
The recoveries of NPAs stood at Rs 386 crore, upgradations at Rs 705
crore and the write-off of loans was at Rs 433 crore in Q4FY2024.
Provision coverage ratio was steady and strong at 99.09% at end
March 2024 compared to 99.17% a quarter ago and 97.94% a year ago.
The capital adequacy ratio of the bank stood at 22.3% with Tier I
ratio at 20.1% at end March 2024.
The risk weighted assets of the bank has increased 8% YoY to Rs 176531
crore end March 2024,
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Asset Quality Indicators: IDBI Bank
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Mar-24
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Dec-23
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Sep-23
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Jun-23
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Mar-23
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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8916.84
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8589.40
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8645.23
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8762.51
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10969.29
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4
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-19
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Net NPA (Rs Crore)
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643.83
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593.34
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651.01
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730.60
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1494.74
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9
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-57
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% Gross NPA
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4.53
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4.69
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4.90
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5.05
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6.38
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-16
|
-185
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% Net NPA
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0.34
|
0.34
|
0.39
|
0.44
|
0.92
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0
|
-58
|
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% PCR
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99.09
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99.17
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99.10
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98.99
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97.94
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-8
|
115
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% CRAR - Basel III
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22.26
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20.32
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21.26
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20.33
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20.44
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194
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182
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% CRAR - Tier I - Basel III
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20.11
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18.04
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18.86
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17.93
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18.08
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207
|
203
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Variation in basis points for figures given in percentages and
in % for figures in Rs crore
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Business Highlights:
Double digit business growth: The
business of the bank has increased 11% YoY to Rs 474551 crore end March 2024, driven
by 14% surge in advances to Rs 196894 crore. Deposits rose 9% to Rs 277657 crore
at end March 2024.
CASA deposits ratio declines yoy, improves qoq: The CASA deposits of the bank increased 3% YoY to Rs 140027 crore
at end March 2024. The current account deposits were flat yoy at Rs 49014 crore,
while saving account deposits increased 5% to Rs 91013 crore end March 2024. The
CASA ratio declined to 50.4% at end March 2024 compared to 53.0% at end March
2023, while improved from 49.9% a quarter ago. The term deposits have increased
15% to Rs 137630 crore end March 2024.
Healthy loan growth: Advances growth
was driven by retail loans rising 21% YoY to Rs 112409 crore at end March 2024,
while credit to MSME rose 6% to Rs 14613 crore at end March 2024. The corporate
credit also rose 9% to Rs 58132 crore, but credit to agriculture declined 3% to
Rs 11740 crore end March 2024.
Investment book of the bank increased 15% YoY to Rs 114934 crore at end March
2024. The SLR book moved up 17% to Rs 85849 crore, while non SLR book galloped 10%
to Rs 33295 crore at end March 2024. The AFS book jumped 24% to Rs 34802 crore,
while HTM book rose 12% to Rs 74910 crore at end March 2024. The duration of
the overall investment portfolio stood at 3.95 years end March 2024 compared
with 4 years at end March 2023.
Margins improve qoq: The bank has
showed 77 bps YoY jump in cost of deposits to 4.48%, while yield on advances
increased 37 bps YoY to 10.82% in Q4FY2024. The NIM has declined 10 bps YoY,
while improved 15 bps qoq to 4.91% in Q4FY2024.
Book value of the bank stood at Rs 39.0
per share at end March 2024, while the adjusted book value (net of NNPA and 10%
of restructured advances) was Rs 38.3 per share at end March 2024.
Quarterly Performance
NII rises on healthy NIMs: Bank has
recorded 22% increase in the interest earned at Rs 6990.47 crore, while
interest expenses increased 35% to Rs 3302.58 crore in Q4FY2024. NII improved 12%
to Rs 3687.89 crore in the quarter ended March 2024.
Healthy growth in the core fee income: Bank has posted strong 10% growth in core fee income to Rs 534 crore,
while the treasury income surged 97% to Rs 140 crore. The recoveries income
declined 79% to Rs 118 crore, forex income 37% to Rs 87 crore. other income 35%
to Rs 17 crore, causing 30% dip in the overall non-interest income to Rs 896.17
crore in the quarter ended March 2024.
Expenses ratio jumps: The operating
expenses of the bank increased 12% to Rs 2408.95 crore, as other expenses moved
up 20% to Rs 1103.08 crore, while employee expenses increased 7% to Rs 1305.87 crore
in Q4FY2024. Cost to income ratio jumped to 52.6% in Q4FY2024 compared with 46.9%
in Q4FY2023. Operating Profit increased 10% to Rs 2175.11 crore.
Provisions and contingencies decline: The bank has showed 88% decline in provisions to Rs 113.82 crore. The
loan loss provisions rebounded to Rs 356 crore, while investment provisions
fell 95% to Rs 43 crore and other provisions dipped 100% to Rs 5 crore. Further,
the bank has written back standard asset provisions of Rs 290 crore.
Effective tax rate declined to 21.0% in Q4FY2024 from 21.4% in
Q4FY2023. Net Profit rose by 44% YoY to Rs 1628.46 crore during quarter ended
March 2024.
Financial Performance FY2024
Bank has posted 55% increase in net profit to Rs 5634.09 crore in
the year ended March 2024 (FY2024). The net interest income increased 24% to Rs
14186.44 crore, while non-interest income dipped 17% to Rs 3610.91 crore. Net
total income increased 13% to Rs 17797.35 crore in FY2024. The operating
expenses increased 16% to Rs 8205.29 crore, while provision and contingencies dipped
60% to Rs 1396.64 crore, allowing profit before tax to increase 56% to Rs 8195.42
crore in FY2024. The cost-to-income ratio increased to 46.1% in FY2024 compared
to 44.7% in FY2023. An effective tax rate rose to 31.3% in FY2024 compared to 30.4%
in FY2023. The net profit has increased 55% to Rs 5634.09 crore in FY2024.
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IDBI
Bank: Results
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Particulars
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2403
(3)
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2303
(3)
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Var %
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2403
(12)
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2303
(12)
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Var %
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Interest Earned
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6990.47
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5726.17
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22
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26426.13
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20569.78
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28
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Interest Expended
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3302.58
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2446.59
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35
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12239.69
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9139.23
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34
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Net Interest Income
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3687.89
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3279.58
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12
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14186.44
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11430.55
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24
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Other Income
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896.17
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1287.67
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-30
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3610.91
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4371.98
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-17
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Net Total Income
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4584.06
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4567.25
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0
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17797.35
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15802.53
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13
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Operating Expenses
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2408.95
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2142.27
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12
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8205.29
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7066.70
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16
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Operating Profits
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2175.11
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2424.98
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-10
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9592.06
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8735.83
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10
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Provisions & Contingencies
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113.82
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983.63
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-88
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1396.64
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3497.86
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-60
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Profit Before Tax
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2061.29
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1441.35
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43
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8195.42
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5237.97
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56
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Provision for tax
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432.83
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307.98
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41
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2561.33
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1592.88
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61
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PAT
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1628.46
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1133.37
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44
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5634.09
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3645.09
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55
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EPS*(Rs)
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6.1
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4.2
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5.2
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3.4
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Adj BV (Rs)
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38.3
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32.9
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38.3
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32.9
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*
Annualized on current equity of Rs 10752.4 crore. Face Value: Rs 10, Figures
in Rs crore
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Source:
Capitaline Corporate Database
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