HT Bureau
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GUWAHATI, July 25: IDBI Bank Limited announced its financial results for the quarter ended June 30, 2023, showing impressive growth and improved financial indicators. The bank’s net profit for Q1 FY24 stood at Rs 1,224 crore, reflecting a robust increase of 62% year-on-year (YoY). The operating profit also exhibited strong growth, reaching Rs 3,019 crore, a YoY increase of 47%.
The Net Interest Margin (NIM) recorded a significant growth of 178 basis points (bps) at 5.80%, and the Net Interest Income (NII) surged to Rs 3,998 crore, showing a remarkable YoY growth of 61%. The Cost of Deposit was reported at 4.12%.
The bank’s Capital to Risk-Weighted Assets Ratio (CRAR) stood at 20.33%, reflecting a YoY growth of 76 bps. Return on Assets (ROA) was recorded at 1.49%, indicating a YoY growth of 46 bps, while Return on Equity (ROE) showed a substantial YoY growth of 383 bps, standing at 18.63%.
IDBI Bank also demonstrated an improvement in asset quality as Non-Performing Assets (NPAs) witnessed a decline. Net NPA decreased to 0.44% from 1.26% as of June 30, 2022, indicating a significant reduction of 82 bps. Similarly, Gross NPA decreased to 5.05% from 19.90% as of June 30, 2022, reflecting a remarkable decrease of 1485 bps.
Additionally, the Provision Coverage Ratio (PCR) showed positive growth, standing at 98.99%, as compared to 97.78% as of June 30, 2022, reflecting an increase of 121 bps.
IDBI Bank’s strong financial performance in Q1 FY24 demonstrates its ability to capitalize on opportunities and effectively manage its assets to deliver value to its stakeholders. The bank’s improved asset quality and increased profitability are indicative of its commitment to sustainable growth and sound financial management.
