IDBI Bank reports Rs 324 crore profit for Q2; NPA ratio down

IDBI Bank on Friday reported a net profit of Rs 324 crore for the second quarter of the current fiscal year against a loss of Rs 3,459 crore for the same period of the previous fiscal. Compared sequentially, the bank registered a 125 per cent jump against the first quarter net profit of Rs 144 crore, IDBI Bank said in release.

Total income of the bank fell by 7.5 per cent to Rs 5,761.06 crore during July-September 2020-21 compared to Rs 6,231.02 crore in the same period of 2019-20, the private sector lender said.

The bank's net interest income grew by 4 per cent to Rs 1,695 crore during the reported quarter, while the net interest margin improved by 37 basis points to 2.70 per cent from 2.33 per cent.

The lender promoted by LIC said it also improved on its bad assets ratio by reducing gross non-performing assets (NPAs) to 25.08 per cent of gross loans as on September 30, 2020, against 29.43 per cent a year ago. Net NPAs improved to 2.67 per cent from 5.97 per cent.

In absolute value, gross NPAs stood at Rs 41,090.53 crore by the end of September 2020 against Rs 52,052.78 crore by September 2019. Net NPAs were down at Rs 3,362.66 crore from Rs 7,918.61 crore.

Provisions for bad loans and contingencies were down at Rs 581.15 crore for the September quarter against Rs 5,641.32 crore for the year-ago quarter.

The return on assets was at 0.43 per cent against (-)4.54 per cent a year ago period.

"Bank has made COVID-19 related provision of Rs 247 crore in March 2020 quarter and Rs 189 crore in June 2020 quarter. Cumulative COVID-19 related provision was Rs 436 crore as at September 30, 2020. The provision made by the bank is more than minimum required as per the RBI guidelines," IDBI Bank said.

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