IDBI Bank Q3 Earnings: Net Profit Jumps 31% To Rs 1,908 Crore
In comparison, for the year-ago period, the Life Insurance Corp.-controlled bank had reported a net profit of Rs 1,458 crore.
IDBI Bank on Monday posted a net profit of Rs 1,908 crore in the December quarter. The scheduled commercial bank attributed the 31% growth in its net profit in the third quarter of the financial year 2024-25 to its lower provisioning and better interest income.
In comparison, for the year-ago period, the Life Insurance Corp.-controlled bank had reported a net profit of Rs 1,458 crore.
In the October-December quarter of the ongoing fiscal, the lender's total income rose to Rs 8,565 crore against Rs 7,514 crore that it had reported for the similar period last year, according to the bank's regulatory filing.
The Mumbai-based bank's interest income improved during the third quarter of the current fiscal to Rs 7,816 crore, compared to Rs 6,541 crore a year ago.
its net interest income improved to Rs 4,228 crore, as against Rs 3,435 crore in Q3 of FY24.
The gross non-performing asset ratio improved to 3.57% as on Dec. 31, 2024, compared 4.69% as on Dec. 31, 2023.
Similarly, the net NPA also declined to 0.18% from the 0.34% that it had reported at the end of Dec. 2023.
As a result, provisioning and contingencies came down to Rs 166 crore in the December quarter, from Rs 320 crore in the same quarter of the last fiscal.
Provision coverage ratio, including technical write-offs, also improved at 99.47% as of Dec. 31, 2024, against 99.17% at the end of Dec. 2023.
During the quarter, the bank's capital adequacy ratio rose to 21.98%, compared to 20.32% at the third quarter of FY24.
In a separate filing, IDBI Bank also stated that its board has approved the proposal for sale of its entire holding in its associate company, Pondicherry Industrial Promotion Development and Investment Corp.
The bank's total stake in PIPDIC totals up to 21.14%, or 8,54,000 shares with a face value of Rs 100 apiece.
The government, which owns over 45% stake in IDBI Bank, has been planning to offload some of its shareholding. It is expected that the process may gather pace in the next financial year.
However, life insurance behemoth LIC is keen to hold on to its 49.24% stake so as to benefit from the bancassurance channel.
Shares of IDBI Bank Ltd. closed 2.46% higher at Rs 86.12 apiece on the BSE, compared to a 0.59% advance in the benchmark Sensex.
- With PTI Inputs
