IDBI Bank Q3 Updates: Net Advances Jump 18%, Deposits Up 9%

IDBI Bank reported a 13% year-on-year growth in its total business for the third quarter for fiscal 2025, reaching Rs 4.9 lakh crore compared to Rs 4.3 lakh crore in the same period last year.

Total deposits rose by 9% to Rs 2.8 lakh crore from Rs 2.6 lakh crore, while net advances increased by 18% to Rs 2.1 lakh crore against Rs 1.8 lakh crore in the corresponding quarter.

The board of directors approved raising Rs 10,000 crore through long-term bonds to finance infrastructure and affordable housing projects on Dec. 31, 2024.

According to an exchange filing, up to Rs 5,000 crore will be raised by March 31, 2025, with the remaining amount to be mobilised in the financial year 2025-26. Details on maturity, coupon rate, and other specifics were not disclosed.

The decision aligns with a broader trend among banks to raise funds via infrastructure bonds amid slower deposit growth across the banking sector. These bonds typically have a minimum maturity of seven years and come with regulatory exemptions such as statutory liquidity ratio and cash reserve ratio requirements.

For the second quarter ending in September, IDBI Bank reported a 39% YoY rise in profit after tax to Rs 1,836 crore, compared to Rs 1,323 crore in the same quarter last year. Net interest income grew by 26% to Rs 3,067 crore, while net advances rose by 19% to Rs 2.01 lakh crore.

The bank's gross nonperforming asset ratio improved to 3.68% from 3.87% quarter-on-quarter, while net NPA stood at 0.2% compared to 0.23% in the previous quarter. The provision coverage ratio increased to 99.42%, marking a 32-basis-point improvement YoY.

Deposits as of September 30, 2024, were Rs 2.77 lakh crore, reflecting an 11% annual growth. The net interest margin expanded by 54 basis points QoQ to 4.87%.

IDBI Bank, jointly owned by the Life Insurance Corporation of India and the Government of India, continues to operate as a development finance institution supporting industrial sector financing in the country.

Shares of the company closed 1.16% higher at Rs 77.52 apiece compared to a 0.76% decline in the benchmark NSE Nifty 50.