IDBI Bank Q2 FY25 results: Net profit rises 39% to Rs 1,836 crore

Net interest income expanded 26% Y-o-Y to Rs 3,875 crore in Q2FY25 compared to a year-ago period

Private sector lender IDBI Bank on Friday reported a healthy 39 per cent jump year on year (Y-o-Y) in its net profit for the second quarter of the current financial year (Q2FY25) to Rs 1,836 crore on improvement in net interest margins and an uptick in non-interest income.

 

Sequentially, the Mumbai-based lender’s net profit rose by 7 per cent from Rs 1,719 crore in Q1FY25. Its stock closed 1.78 per cent up at 82.8 per share on the BSE on Friday.

 

IDBI Bank’s net interest income (NII) expanded 26 per cent Y-o-Y to Rs 3,875 crore in Q2FY25 compared to Rs 3,066 crore in the same quarter a year ago. Net interest margin (NIM) improved by 54 basis points to 4.87 per cent from 4.33 per cent in Q2FY24. Sequentially, NIM was up from 4.18 per cent in Q1FY25. 

 

 

The bank’s non-interest income, fees earned from providing services to customers, and commission income rose 48 per cent Y-o-Y to Rs 1,313 crore, the bank said in a statement filed with the BSE.

 

The asset quality profile improved with gross non-performing assets (NPAs) declining to 3.68 per cent in September 2024 from 4.9 per cent in September 2023. Net NPAs also declined from 0.39 per cent in September 2023 to 0.2 per cent in September 2024. The provision coverage ratio (PCR), including written-off accounts, stood at 99.42 per cent in September compared to 99.10 per cent a year ago.

 

Advances grew by 19 per cent Y-o-Y to Rs 2 trillion in Q2FY25. The composition of corporate vs retail in the gross advances portfolio was at 29:71 as of September 30, 2024, against 30:70 as of September 30, 2023.

 

Total deposits increased 11 per cent Y-o-Y to Rs 2.77 trillion. The share of low-cost deposits — current account and saving account (Casa) – declined to 48.14 per cent in September 2024 from 51.5 per cent a year ago.

 

The bank’s capital adequacy stood at 21.98 per cent, with Tier-1 at 19.89 per cent at the end of September 2024.