Lender giant IDBI Bank on Friday reported a 39 per cent growth in net profit to Rs 1,836 crore for the quarter ended September 30, 2024, driven by an improvement in interest income. According to PTI News, the LIC-controlled bank had made a net profit of Rs 1,323 crore in the same period last year. IDBI Bank said in a regulatory filing that total revenue rose to Rs 8,754 crore in the quarter under review from Rs 6,924 crore in the year-ago period.
Net interest income increased to Rs 3,875 crore
According to the news, the bank’s net interest income increased to Rs 3,875 crore in the July-September quarter from Rs 3,066 crore in the September 2023 quarter, registering a growth of 26 per cent. Similarly, the net interest margin increased from 4.33 percent to 4.87 percent at the end of September 2023. The bank’s asset quality saw improvement and gross non-performing assets (NPA) increased to 3 .68 percent of gross advances at the end of the September 2024 quarter, compared to 4.90 percent a year ago.
Considerable improvement in NPA
Net delinquencies or bad loans also decreased to 0.20 percent, compared to 0.39 percent in the same period a year ago. The bank’s capital adequacy ratio increased to 21.98 percent at the end of September 2023 from 21.26 percent. The provision coverage ratio (including technical write-offs) increased from 99.10 percent as of September 30, 2023 to 99.42 percent as of September 30, 2024.
The government is preparing to sell around 61 per cent stake in IDBI Bank in collaboration with public sector insurance company LIC. During this period, 30.48 per cent shares of the Central Government and 30.24 per cent shares of Life Insurance Corporation of India (LIC) will be sold.
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