IDBI Bank’s Q3 net profit rises 57% to Rs 1,458 crore

IDBI Bank on Saturday reported 57 per cent rise in net profit to Rs 1,458 crore in the third quarter ended December 31 due to lower provisions and better interest income. The LIC-controlled bank had a net profit of Rs 927 crore in the October-December quarter of 2022.

The bank’s interest income increased to Rs 6,541 crore during the third quarter of the current financial year from Rs 5,231 crore in the same period of the last financial year. The gross non-performing assets (NPA) ratio improved to 4.69 per cent as on December 31, 2023, from 13.82 per cent as on December 31, 2022.

Similarly, net NPA also declined to 0.34 per cent at the end of December 2022 compared to 1.08 per cent. As a result, provisions and contingencies declined to Rs 320 crore in the December quarter from Rs 784 crore in the same quarter. Of the last financial year.

The provision coverage ratio (including technical write-offs) as on December 31, 2023 was 99.17 per cent. The bank’s capital adequacy ratio increased to 20.32 per cent during the quarter compared to 20.14 per cent at the end of December 2022.

It said the bank has not raised capital during the December quarter and the earlier funds have been fully utilised. The government, which holds over 45 per cent stake in IDBI Bank, is planning to sell its stake in the bank and the process may gain momentum in the next financial year.

Meanwhile, life insurance giant LIC, which holds 49.24 per cent stake, is keen to hold a strategic stake in the bank so that it can leverage the bancassurance channel.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)