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IDBI Bank back in black in Q3FY21, posts net profit of ₹378 cr
- Net interest income for Q3FY21 improved by 18% to ₹1,810 crore
- The bank's asset quality improved as gross NPAs reduced to 23.525 of the gross advances as of 31 Dec, 2020
IDBI Bank on Thursday reported net profit of ₹378 crore for the quarter ending 31 December, 2020. The lender posted net loss of ₹5,763 crore in the year-ago period.
Net interest income (NII) for Q3FY21 improved by 18% to ₹1,810 crore as against ₹1,532 crore for Q3FY20.
Gross NPA ratio improved to 23.52% as on 31 December, 2020 as against 28.72% as on 31 December, 2019 and 25.08% as on 30 September, 2020.
Net NPA ratio improved to 1.94% as on 31 December, 2020 as against 5.25% as on 31 December, 2019 and 2.67% as on 30 September, 2020.
Provision Coverage Ratio improved to 97.08% as on 31 December, 2020 from 92.41% as on 31 December, 2019 and 95.96% as on 30 September, 2020.
On Thursday, the bank's scrip on NSE closed 1.8% higher at ₹28.
Net interest margin (NIM) improved by 60 basis points to 2.87 per cent in the third quarter as compared to 2.27 per cent in the same period a year ago, IDBI Bank said in a release.
In value terms, gross NPAs were worth ₹37,559.39 crore at December-end 2020 as against ₹49,502.68 crore by the end of same month a year ago. Net NPAs were valued at ₹2,410.90 crore, lower than ₹6,805.49 crore.
However, the overall provisions for bad loans and contingencies were kept higher at ₹796.31 crore for December quarter 2020-21 as against ₹521.95 crore kept aside for the year-ago period.
But out of this, the provisions for bad loans were substantially lower at ₹48.52 crore as against ₹440 crore a year ago.
Provision coverage ratio (including technical write-offs) improved to 97.08 per cent as on December 31, 2020 from 92.41 per cent a year ago and 95.96 per cent by the end of September 2020.
IDBI Bank said it raised equity capital of ₹1,435.18 crore during the quarter through QIP.
The tier 1 capital improved to 12.22 per cent from 10.16 per cent and CRAR (capital to risk weighted assets ratio) improved to 14.77 per cent from 12.56 per cent, it added.
Among others, during the quarter ended December 2020, the bank has sold 23 per cent stake out of 48 per cent holding in its joint venture IDBI Federal Life Insurance Company (now Ageas Federal Life Insurance Company Ltd).
The post-sale holding in the joint venture is 25 per cent as on December 31, 2020, the bank said.
Further, in accordance with the RBI guidelines relating to COVID-19, the bank has cumulative COVID-19 related provision of ₹436 crore as on December 31, 2020.
The provision made by the bank is more than minimum required as per the RBI guidelines, it said.
The bank has made provision of ₹70 crore during the quarter ( ₹270 crore as on September 30, 2020 has been continued), towards the provisioning requirement for cases to be restructured under the resolution framework.
The cumulative provision is ₹340 crore as on December 31, 2020, said the lender.
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First Published:28 Jan 2021, 04:17 PM IST
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