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MUMBAI: IDBI bank on Monday reported a full year profit for the first time in five years at Rs1,359 crore for FY21. The private sector lender had reported a net loss of Rs12,887 crore in fiscal 2019-20.

In the fourth quarter, the bank reported a nearly four-fold jump in its net profit to Rs512 crore due to tax refund and higher net interest income. Net profit stood at Rs135 crore in the year-ago quarter.

The lender received Rs2,305 crore in tax refunds, of which around Rs1,300 crore was interest. This part was used to make provisions worth Rs500 crore for covid-induced cases and Rs800 crore as accelerated provision.

Net interest income rose 38% year-on-year to Rs3,240 crore at the end of March.

The bank, which came out of the Reserve Bank of India's prompt corrective action (PCA) framework in March this year, said its turnaround strategies led to the transformation.

"Earlier our focus was on retail. We also saw 8-10% growth in mid corporate and large corporate and structured retail assets. We expect 10% growth in advances in FY21,’ said Rakesh Sharma, managing director and chief executive officer, IDBI bank.

Gross NPA (non-performing asset) ratio as a percentage of total loans improved to 22.37% as on 31 March from 27.53% in the year-ago period. Net NPA ratio improved to 1.97% from 4.19%.

Provisions for bad loans and contingencies stood at Rs2,457 crore during the fourth quarter as against 1,584 crore in the corresponding quarter last year.

Sharma said the bank has made adequate provisions and does not forsee any impact due to second covid wave.

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