On July 28, Industrial Development Bank of India (IDBI) recorded a more than four-fold growth in its first-quarter standalone net profit to ₹603.30 crore for the current financial year with the help of net non-performing assets (NPA) or bad loans falling down to 1.67 percent from 3.55 percent.
The provisions of IDBI for bad loans and contingencies was up ₹1,751.80 crore in Q1 as compared to June 2020’s ₹888.05 crore.
The LIC-controlled bank stated in a regulatory filing that its total income had soared to ₹6,554.95 crore during the same period from ₹5,901.02 crore in the last fiscal’s Q1.
According to Business Line, the bank had reported a ₹144 crore net profit for April-June 2020-21. For Q1 ended June 30 2021, net interest income (NII) jumped 41 per cent YoY to ₹2,506 crore.
The bank’s asset quality has upgraded with gross NPA displaying a decrease of 22.71 percent in gross advances as of June 2021 from June 2020’s 26.81 percent.
In addition, Provision Coverage Ratio including Technical Write-Offs rose 97.42 per cent in the June quarter against 94.71 per cent in June 2020. Net Interest Margin (NIM) increased by 125 basis points to 4.06 per cent in Q1 from previous fiscal’s 2.81 per cent. The bank’s provision is more than the minimum requirement of RBI’s guidelines.
IDBI Bank is providing cash management services, savings and current accounts to LIC and its employees and asset products.
