IDBI Bank Q2 profit jumps 39% to Rs 1,836 crore on strong interest income
IDBI Bank reported a strong 39 percent jump in net profit to Rs 1,836 crore for the quarter ended September 30, 2024, compared to Rs 1,323 crore in the same period last year. This impressive growth was mainly due to improved interest income, according to the bank’s regulatory filing.
The bank’s net income rose to Rs 8,754 crore from Rs 6,924 crore in the previous year, reflecting its strong performance. Net interest also showed a strong increase of 26 percent to Rs 3,875 crore for the quarter, from Rs 3,066 crore in Q2 2023. IDBI Bank’s Net interest margin (NIM) increased to 4.87% from 4.33% quarter of last year. , indicating improved profitability.
Asset quality metrics saw an improvement, as gross non-performing assets (NPAs) declined to 3.68 percent of total advances compared to 4.90 percent last year. Similarly, gross NPAs declined to 0.20 percent from 0.39 percent, indicating healthy asset quality.
In terms of financial health, the bank’s Capital Adequacy Ratio increased to 21.98 percent, from 21.26 percent in September 2023, indicating strong capital reserves. The Provision Coverage Ratio (PCR), including technical shutdowns, increased marginally to 99.42 percent from 99.10 percent.
With LIC as its controlling shareholder, IDBI Bank continues to capitalize on improved interest income and strong asset management, posting strong quarterly results and a positive outlook for asset quality and capital adequacy.
