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IDBI Bank has announced its Q1 results for the quarter ending in June 2022 wherein its profits grew 25% from Rs 603 crores last year to Rs 756 crores this year.
The bank's net interest income declined 1% YoY to Rs 2,488 crores but was up 3% QoQ. The same could be seen for its Net Interest Margin which came in at 4.02% this quarter. This was on account of several one-offs like income tax refunds, bad loan recoveries, and profit from treasury operations received by the bank last year.
Wipro Q1 results are live, read more.
The Gross NPAs of the bank declined to 19.9% during the quarter while Net NPAs fell to 1.25%, signifying an improvement in asset quality. Total recoveries of the bank declined 29% to Rs 1,136 crores since the bank had no large recoveries from accounts like Kingfisher and Videocon, unlike last year.
The bank had guided loan growth of 10-12% as gross advances grew 8.74% YoY. Retail loans accounted for 63%. Total deposits of the bank grew 1% as the CASA ratio improved to 55.65%. A major contributor to the profits was low provisions. Provisioning declined 48% YoY to Rs 959 crores.
“Total slippages are down to Rs 964 crore this year from Rs 1,332 crore a year ago. Our corporate loan book now consists of more than 70% loans above the A category compared to 50% a year ago. Hence, we are confident of keeping credit costs below 1%,” Rakesh Sharma, CEO of IDBI Bank said.
Moreover, during the results announcement, the CEO also disclosed that the government, which holds a 45.5% stake in the bank, will be floating an EoI for divestment of its stake in one month. This move comes two weeks after the Cabinet Committee of Economic Affairs (CCEA) allowed the Central Government to divest its stake.
The stock closed at Rs 36.60 per share today, down 0.54%.
Article by Aman Agarwal.
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