Net Interest Income or core income for the lender (NII) grew by 10% from last year to ₹3,486 crore. However, the figure was down 9% on a sequential basis.
Net profit for the period grew by 5% year-on-year to ₹2,115 crore. The profitability was also aided by a provision write-back of ₹636.89 crore, compared to provisions of ₹285 crore in the previous quarter.
Asset quality remained stable with Gross NPA at 2.3% from 2.32% in March, while Net NPA stood at 0.16% from 0.15% in the previous quarter. In absolute terms, IDBI Bank’s Gross NPA stood at ₹6,089 crore from ₹6,028 crore, while Net NPA stood at ₹425.5 crore from ₹379 crore in March.
IDBI Bank’s Net Interest Margins (NIMs) were under pressure with the 3.61% figure being 7 basis points lower than last year and 54 basis points lower than the previous quarter’s figure of 4.15%.
Net Advances for the quarter increased by 22% from last year to ₹2.58 lakh crore, while deposits grew by 10% to ₹3.25 lakh crore. On a sequential basis, advances were up 2%, while deposits were down 6%.
CNBC-TV18 had reported earlier this week that the government has sped up the strategic disinvestment process of IDBI Bank, citing sources with knowledge of the matter.
Sources said that the government held consecutive high level meetings on the IDBI Bank stake sale on July 13. The core group of secretaries on disinvestment also meet twice on July 13.
The government and Life Insurance Corporation of India (LIC) together plan on selling 60.72% stake in IDBI Bank.
Shares of IDBI Bank ended 1.7% higher on Friday at ₹87. The stock is well below its 52-week high of ₹118.38, and is down 16% so far for the year.
