Sees robust 37.5 per cent increase in net interest income
IDBI Bank’s standalone net profit soared almost four times in the fourth quarter (Q4 FY21) to ₹512 crore against ₹135 crore in the year-ago period.
The profitability in the reporting quarter comes on the back of a robust 37.5 per cent increase in net interest income and a ₹300 crore write back of provision for tax on account of income tax refund for earlier year.
Net interest income (difference between interest earned and interest expended) rose to ₹3,240 crore (₹2,356 crore in the year-ago quarter).
Non-interest income, comprising fee-based income, trading income and other income, was down 11 per cent year-on-year (yoy) to ₹1,181 crore (₹1,326 crore).
The bank received a write-back in non-performing asset (NPA) provisions of Rs 1,120 crore (against a write-back of Rs 1,511 crore in the year ago quarter).
However, in the reporting quarter, the bank made an additional Covid-19-related provision for second wave amounting to ₹500 crore.
During the quarter, the bank also made an additional provision of ₹908.43 crore over and above the IRAC norms in respect of certain borrower accounts in view of the inherent risk and uncertainty of recovery in these identified accounts
So, overall provisions rose 36 per cent yoy to ₹2,367 crore (₹1,738 crore).
Gross non-performing asset (NPA) position improved to 22.37 per cent of gross advances against 27.53 per cent in the year-ago quarter. Net NPAs declined to 1.97 per cent of net advances against 4.19 per cent.
In the reporting quarter, net interest margin (NIM) improved to 5.14 per cent (annualised) against 3.80 per cent in the year-ago quarter. Cost-to-income ratio improved to 34.87 per cent from 49.12 per cent.
As of March-end 2021, total deposits increased by 4 per cent yoy to ₹2,30,898 crore and total advances were down 6 per cent yoy to ₹ 1,61,901 crore.