Private lender IDBI Bank reported a massive 35% YoY growth in profits for the quarter ended in March 2022.

The bank's profit for the quarter was Rs 690.60 crores, up 34.83% against profits for the corresponding period last quarter. Moreover, profits grew 19.43% QoQ as profit for the quarter ended in December 2021 was Rs 578.25 crores. 

However, the company's revenues declined 21.04% YoY from Rs 6,894.86 crores to Rs 5,444.08 crores & 5.54% sequentially. Revenues from Corporate banking and Treasury declined sharply, amounting to most of the decline in revenues. Corporate banking revenues declined 47.7% YoY while Treasury revenues fell 41.24%. Retail banking saw marginal growth during the quarter.

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The company's operating profits saw a sharp decline of 46.3% to Rs 1,513.21 crores from Rs 2,816 crores. The bank's increased profit was on the back of reduced provisions. The figure of provisions at the end of this quarter stood at Rs 669.23 crores, down 72% YoY and 16.5% QoQ!

For the year ended on 31st March 2022, the total income of the bank stood at Rs 22,985.19 crores, down 6.2%. Its provisions fell from Rs 4,666.47 to Rs 3,886.54, down 16.7%. Accordingly, the company's profits grew 79.43% YoY to Rs 2,439.27 crores. The bank saw significant improvement in asset quality as the Gross NPA ratio improved from 22.37% to 19.14% & Net NPA improved from 1.97% to 1.27%.

The stock of IDBI has recently begun consolidating. It saw a jump of 7.85% a few days ago, but it fell down to earlier levels as it trades around Rs 45.50 presently.

Article by Aman Agarwal.

This news piece is brought to you in association with jobaaj.com

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