Lender giant IDBI Bank on Friday reported 39 per cent growth in net profit at Rs 1,836 crore for the quarter ending September 30, 2024, led by improvement in interest income. According to PTI news, the LIC-controlled bank had earned a net profit of Rs 1,323 crore in the same period a year ago. IDBI Bank said in a regulatory filing that total income rose to Rs 8,754 crore in the quarter under review from Rs 6,924 crore in the same period a year ago.
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 quarter of 2023, registering a growth of 26 percent. Similarly, the net interest margin increased from 4.33 per cent to 4.87 per cent at the end of September 2023. The bank’s asset quality witnessed improvement and gross non-performing assets (NPAs) rose to 3.68 per cent of gross advances at the end of the September 2024 quarter, compared to 4.90 per cent a year ago.
Considerable improvement in NPA
Net NPA or bad loans also declined to 0.20 per cent, compared to 0.39 per cent in the year-ago period. The bank’s capital adequacy ratio increased to 21.98 per cent at the end of September 2023 from 21.26 per cent. Provision coverage ratio (including technical write-offs) increased from 99.10 per cent as on September 30, 2023 to 99.42 per cent as on September 30, 2024.
The government is preparing to sell about 61 percent stake in IDBI Bank in collaboration with public sector insurance company LIC. During this period, 30.48 percent stake of the Central Government and 30.24 percent stake of Life Insurance Corporation of India (LIC) will be sold.
