 "IDBI Bank")
Private sector lender IDBI Bank’s net profit for the March 2023 quarter (Q4FY23) rose by 64 per cent year-on-year (Y-o-Y) to Rs 1,133 crore on improvement in net interest margins. Sequentially, the profit increased by 22.2 per cent from Rs 927 crore in December 2022 (Q3FY23).
For FY23, the net profit grew by 49 per cent to Rs 3,645 crore as against Rs 2,439 crore for FY22.
IDBI Bank’s board of directors recommended a dividend of 10 per cent (Rs one) per share of Rs 10 each for the financial year ended March 2023 (FY23), subject to shareholder’s approval, the bank said in a filing with BSE. It has proposed a dividend after eight years, the bank officials said.
Its capital adequacy ratio stood at 20.44 per cent with Common Equity Tier of 18.08 per cent at the end of March 2023.
IDBI Bank’s net interest income (NII), interest revenues minus interest expenses, grew by 35 per cent on Y-o-Y basis to Rs 3,280 crore in Q4FY23 as against Rs 2,420 crore for Q4FY22. Net interest margin (NIM) improved to 5.01 per cent for Q4FY23 from 3.97 per cent for Q4FY22.
Advances expanded by 19 per cent on Y-o-Y basis to Rs 162,568 crore in FY23. Total deposits increased by 10 per cent Y-o-Y to Rs 255,499 crore. The share of low-cost money – Current account and Savings Account (CASA) in total deposits stood at 53.02 per cent at the end of March 2023, down from 56.77 per cent a year ago.
IDBI Bank’s asset quality profile improved with gross non-performing assets (NPA) declining to 6.38 per cent in March 2023 from 20.16 per cent in March 2022. The net NPAs also declined to 0.92 per cent in March 2023 from 1.36 per cent a year ago. The provision Coverage Ratio (CAR) stood at 97.94 per cent at the end of March 2023.
