IDBI Bank Limited, a renowned name in the Indian banking sector, has recently disclosed its financial results for the quarter and half-year ending September 30, 2023. The data reveals that the bank has posted a net profit of ₹1,323 crore, indicating a significant YoY growth of 60%.

Financial Performance Highlights: Q2 FY 2024

Taking a closer look at the bank’s quarterly performance, some key indicators stand out:

• Operating Profit & Net Profit: The operating profit reached ₹2,072 crore. This net profit growth is notably higher, especially when contrasted against the Q2-2023 figure of ₹828 crore.
• Interest & Deposits: The bank reported a net interest income of ₹3,067 crore (YoY growth of 12%). The net interest margin (NIM) was pegged at 4.33%, and the cost of deposit settled at 4.23%.
• Asset Quality: Significant improvements in asset quality were observed, with the Gross NPA decreasing to 4.90% and Net NPA at 0.39%. The provision coverage ratio (PCR) was noted at an impressive 99.10%.
• Returns & Ratios: With a CRAR of 21.26% and a YoY growth of 178 bps, the bank’s return on assets (ROA) reached 1.59%, and the return on equity (ROE) touched 19.05%.

Comparative Analysis: Q2 FY 2024 vs Q2 FY 2023

In terms of operating performance, the Q2-2024 profit before tax (PBT) saw a 60% elevation to ₹2,299 crore compared to ₹1,437 crore during Q2-2023. It’s worth noting that the profit for Q2-2023 had included a capital gain of ₹380 crore from the sale of Ageas Federal Life Insurance Company Ltd.

Furthermore, while the cost of deposit and cost of funds have shown increases (standing at 4.23% and 4.49% respectively for Q2-2024), the cost to income ratio has been recorded at 47.63% for the quarter in focus.

Growth in Business Metrics

The CASA for the bank stood at ₹1,28,464 crore, with a CASA ratio of 51.49% as of September 30, 2023. Additionally, there’s been a 15% YoY growth in net advances, tallying up to ₹1,68,502 crore as of the same date. In terms of portfolio composition, the corporate to retail ratio in gross advances was documented at 30:70, demonstrating a shift from the 35:65 ratio as of September 30, 2022.

  IDBI Bank, India