IDBI Bank Ltd.'s net profit rose 61.9% year-on-year in the April–June quarter due to higher core income.
The private sector lender's net profit increased to Rs 1,224 crore in comparison with Rs 756 crore over the same period last year, according to an exchange filing on Monday. Sequentially, the profit rose 8%.
Net interest income surged 60.7% year-on-year to Rs 3,997 crore. Other income declined to Rs 852 crore quarter-on-quarter.
The bank's asset quality position improved, with gross non-performing-asset ratio declining to 5.05% from 6.38% in the previous quarter. The net NPA ratio declined to 0.44% from 0.92%, sequentially.
The bank's net interest margin improved to 5.80% year-on-year, compared with the previous 4.02%. Provisions rose 39% quarter-on-quarter to Rs 1,795 crore.
The lender said that internally, it monitors its core NIM, which is 3.94% at present. "We will maintain (the) NIM at above 3.5% and have been consistently exceeding our guidance," Chief Executive Officer Rakesh Sharma said, at the press conference.
The lender's net advances rose 20% year-on-year to Rs 1,65,403 crore, as compared with Rs 1,38,223 crore over the same period last year.
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