IDBI Bank declares dividend after 8 years, Q4 PAT jumps 64% to ₹1,133 cr | Mint
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Business News/ Markets / Stock Markets/  IDBI Bank declares dividend after 8 years, Q4 PAT jumps 64% to 1,133 cr
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IDBI Bank declares dividend after 8 years, Q4 PAT jumps 64% to ₹1,133 cr

Among major key highlights of fourth quarter and year ending March 31, 2023 period in IDBI Bank would be sharp decline in gross NPA, strong growth in PAT, healthy upside in advances and deposits, and lastly dividend proposal.

IDBI Bank building photographed in Mumbai. (Amoln Kamble/ Mint)Premium
IDBI Bank building photographed in Mumbai. (Amoln Kamble/ Mint)

IDBI Bank posted a net profit of 1,133 crore in the fourth quarter of FY23, rising by a whopping 64% as against a profit of 691 crore a year ago same quarter. The lender recorded an all-time high net profit of 3,645 crore for the entire fiscal FY23. The bank also declared a dividend of 1 per share after 8 years.

Sequentially, IDBI Bank's PAT climbed by 22% in Q4FY23, as against 927 crore recorded in December 2022 quarter.

Net interest income (NII) increased by 35% to 3,280 crore in Q4FY23, as against 2,420 crore in the same quarter last year. Meanwhile, NII is up by 12% from 2,925 crore registered in Q3FY23.

Net interest margins improved to 5.01% for Q4 as compared to 3.97% for Q4FY22, and 4.59% in Q3-FY23.

Furthermore, IDBI's provisions steeply picked up to 1,292 crore in Q4FY23 versus 823 crore in Q4 of FY22 and 1,124 crore in the preceding quarter. Provision Coverage ratio expanded to 97.94% in the quarter under review.

Gross NPA dipped drastically to 6.38% in Q4FY23 compared to 20.16% in Q4FY22 and 13.82% in Q3FY23. Net NPA even entered below the 1%, to 0.92% in the March 2023 quarter as compared to 1.36% in Q4 of FY22 and 1.08% in Q3FY23.

In terms of business growth, IDBI's CASA increased to 1,35,455 crore and its CASA ratio stood at 53.02% as on March 31, 2023. As on March 31, 2022, Total CASA and CASA ratio stood at 1,32,359 and 56.77% respectively.

Also, the bank's net advances grew by 19% YoY to 1,62,568 crore as on March 31, 2023, as against 1,36,955 as on March 31, 2022.

In FY23, IDBI Bank said, "has opened 42 new branches during FY 2023 after 5 years." For full-year FY23, PAT jumped 49% YoY to 3,645 crore which is at an all-time high, while NII climbed by 25% YoY to 11,431 crore.

On Saturday, IDBI's board recommended a dividend of Re 1 per equity share having a face value of 10 each.

IDBI said, "The Board proposed dividend of 1 per share, after 8 years, subject to approval of the members at the ensuing Annual General Meeting"

As of March 31, 2023, the bank's Tier 1 improved to 18.08% versus 16.68% by end of FY22 fiscal.

Similarly, CRAR improved to 20.44% (post proposed dividend) as on March 31, 2023 as against 19.06% as on March 31, 2022. The effect of proposed dividend has been reckoned in determining capital funds in the computation of capital adequacy ratios.

IDBI's Risk Weighted Assets (RWA) stood at 1,63,719 crore as on March 31, 2023 as against 1,54,559 crore as on March 31, 2022.

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Published: 29 Apr 2023, 04:16 PM IST
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