|
IDBI Bank has reported 40% growth in net profit at Rs 1719.27 crore for the quarter ended
June 2024 (Q1FY2025), driven by hefty reversal of provisions. The bank has
posted 19% decline in net interest income (NII), while the core fee income of
the bank improved 4% in Q1FY2025. The Net Interest Margin (NIM) of the bank
dipped to 4.18% in Q1FY2025 compared to 5.80% in the corresponding quarter of
previous year.
On business front, the
bank as has posted 14% growth in business with strong 16% surge in loan book.
The asset quality of the bank was stable in Q1FY2025. Bank has raised the
credit to deposit ratio to 72.6% at end June 2024 from 70.8% at end June 2023.
However, the CASA ratio of the bank has declined to 48.6% at end June 2024 from
52.6% at end June 2023.
Asset quality improves: The bank has exhibited
sharp improvement in the asset quality with the dip in fresh slippages of loans
in Q1FY2025.
The fresh slippages of
loans stood at Rs 659 crore in Q1FY2025 compared with 1852 crore in previous
quarter and Rs 602 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 1508 crore, upgradations at Rs 244 crore and the write-off of loans
was at Rs 29 crore in Q1FY2025.
Provision coverage ratio
was steady at 99.34% at end June 2024 compared to 99.09% a quarter ago and
98.99% a year ago.
The capital adequacy
ratio of the bank stood at 22.4% with Tier I ratio at 20.3% at end June 2024.
The risk weighted assets
of the bank has increased 7% YoY to Rs 177755 crore end June 2024,
|
Asset Quality
Indicators: IDBI Bank
|
|
|
Jun-24
|
Mar-24
|
Dec-23
|
Sep-23
|
Jun-23
|
Variation
|
|
QoQ
|
YoY
|
|
Gross NPA (Rs Crore)
|
7795.42
|
8916.84
|
8589.40
|
8645.23
|
8762.51
|
-13
|
-11
|
|
Net NPA (Rs Crore)
|
453.57
|
643.83
|
593.34
|
651.01
|
730.60
|
-30
|
-38
|
|
% Gross NPA
|
3.87
|
4.53
|
4.69
|
4.90
|
5.05
|
-66
|
-118
|
|
% Net NPA
|
0.23
|
0.34
|
0.34
|
0.39
|
0.44
|
-11
|
-21
|
|
% PCR
|
99.34
|
99.09
|
99.17
|
99.10
|
98.99
|
25
|
35
|
|
% CRAR - Basel III
|
22.42
|
22.26
|
20.32
|
21.26
|
20.33
|
16
|
209
|
|
% CRAR - Tier I -
Basel III
|
20.26
|
20.11
|
18.04
|
18.86
|
17.93
|
15
|
233
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Healthy business growth:
The business of the bank
has increased 14% YoY to Rs 478916 crore end June 2024, driven by 16% surge in
advances to Rs 201368 crore. Deposits moved up 13% to Rs 277548 crore at end
June 2024.
CASA deposits ratio
declines: The
CASA deposits of the bank increased 5% YoY to Rs 134810 crore at end June 2024.
The current account deposits were flat at Rs 44848 crore, while saving account
deposits increased 7% to Rs 89962 crore end June 2024. The CASA ratio declined
to 48.6% at end June 2024 compared to 52.6% at end June 2023, while also eased from
50.4% a quarter ago. The term deposits have increased 23% to Rs 142738 crore
end June 2024.
Strong retail loan
growth: Advances
growth was driven by retail loans rising 25% YoY to Rs 116688 crore at end June
2024, while credit to MSME rose 2% to Rs 14158 crore at end June 2024. The credit
agriculture declined 5% to Rs 11499 crore. The corporate credit has expanded 10%
to Rs 59023 crore end June 2024.
Investment book of the bank moved up 10% YoY to Rs 118504 crore at end June 2024.
The SLR book increased 10% to Rs 89324 crore, while non SLR book rose 9% to Rs
32810 crore at end June 2024. The AFS book dipped 33% to Rs 24554 crore, while
HTM book increased 18% to Rs 78776 crore at end June 2024. The duration of the
overall investment portfolio stood at 4.09 years end June 2024 compared with
3.98 years at end June 2023. The duration of the AFS investment book was at 2.98
years.
Margins decline: The bank has showed 46
bps YoY jump in cost of deposits to 4.58%, while yield on advances dipped 265
bps YoY to 9.82% in Q1FY2025. Thus, the NIM has slipped 162 bps YoY to 4.18%.
Book value of the bank stood at Rs
42.0 per share at end June 2024, while the adjusted book value (net of NNPA and
10% of restructured advances) was Rs 41.5 per share at end June 2024.
Quarterly Performance
NII declines as NIM dip:
Bank has recorded 3% decline
in the interest earned at Rs 6666.00 crore, while interest expenses increased
20% to Rs 3433.18 crore in Q1FY2025. NII declined 19% to Rs 3232.82 crore in
the quarter ended June 2024.
Moderate growth in the
core fee income: Bank has posted strong 4% growth in core fee income to Rs 471
crore, while the recoveries jumped 62% to Rs 147 crore and other income rose 15%
to Rs 31 crore. However, the forex income declined 34% to Rs 75 crore and the
treasury income declined 51% to Rs 81 crore, causing 5% dip in the overall
non-interest income to Rs 805.25 crore in the quarter ended June 2024.
Stable expenses ratio: The operating expenses
of the bank increased 7% to Rs 1962.54 crore, as other expenses moved up 15% to
Rs 1010.2 crore, while employee expenses were flat at Rs 952.34 crore in
Q1FY2025. Cost to income ratio increased to 48.6% in Q1FY2025 compared with
37.8% in Q1FY2024, causing the Operating Profit to dip 31% to Rs 2075.53 crore.
Provisions and
contingencies reversed: The bank has reversed provisions of Rs 443.46 crore. The bank has
reversed loan loss provisions of Rs 901 crore, investment provisions of Rs 358
crore and other provisions of to Rs 11 crore. However, standard asset
provisions jumped 67% to Rs 826 crore.
Effective tax rate
declined to 31.7% in Q1FY2025 from 33.0% in Q1FY2024. Net Profit rose by 40%
YoY to Rs 1719.27 crore during quarter ended June 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.
|
IDBI Bank: Results
|
|
Particulars
|
2406 (3)
|
2306 (3)
|
Var %
|
2403 (12)
|
2303 (12)
|
Var %
|
|
Interest Earned
|
6666.00
|
6859.99
|
-3
|
26426.13
|
20569.78
|
28
|
|
Interest Expended
|
3433.18
|
2862.40
|
20
|
12239.69
|
9139.23
|
34
|
|
Net Interest Income
|
3232.82
|
3997.59
|
-19
|
14186.44
|
11430.55
|
24
|
|
Other Income
|
805.25
|
851.96
|
-5
|
3610.91
|
4371.98
|
-17
|
|
Net Total Income
|
4038.07
|
4849.55
|
-17
|
17797.35
|
15802.53
|
13
|
|
Operating Expenses
|
1962.54
|
1830.83
|
7
|
8205.29
|
7066.70
|
16
|
|
Operating Profits
|
2075.53
|
3018.72
|
-31
|
9592.06
|
8735.83
|
10
|
|
Provisions &
Contingencies
|
-443.46
|
1190.43
|
LP
|
1396.64
|
3497.86
|
-60
|
|
Profit Before Tax
|
2518.99
|
1828.29
|
38
|
8195.42
|
5237.97
|
56
|
|
Provision for tax
|
799.72
|
604.11
|
32
|
2561.33
|
1592.88
|
61
|
|
PAT
|
1719.27
|
1224.18
|
40
|
5634.09
|
3645.09
|
55
|
|
EPS*(Rs)
|
6.4
|
4.6
|
|
5.2
|
3.4
|
|
|
Adj BV (Rs)
|
41.5
|
34.7
|
|
38.3
|
32.9
|
|
|
* Annualized on current equity of
Rs 10752.4 crore. Face Value: Rs 10, Figures in Rs crore
|
|
Source: Capitaline Corporate
Database
|
|