Stat-owned IDBI Bank on Saturday (October 21) reported a 60% year-on-year (YoY) jump in net profit at ₹1,323 crore for the second quarter that ended September 30, 2023, on the back of a fall in bad loans.

The private sector lender controlled by India's largest insurer LIC had posted a net profit of Rs 828 crore in the year-ago period.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, jumped 12%, coming at ₹ 3,066.5 crore against ₹2,738.1 crore in the corresponding quarter of FY23.

The gross non-performing assets (NPA) ratio showed a sequential improvement, declining to 4.9 percent from the 5.05 percent reported in the June 2023 quarter. The net NPA also showed improvement, decreasing to 0.39 percent in Q2FY24 from the 0.44 percent recorded in the preceding quarter.

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Total income for the second quarter stood at ₹6,924.2 crore, marking a 14 percent increase compared to the ₹6,065.5 crore reported in the same period the previous year. However, it's important to note that the total income was 10 percent lower in comparison to the ₹7,712 crore reported in the first quarter of the current fiscal.

During the quarter, the bank's operating expenses totaled ₹1,884.2 crore, reflecting a 16 percent increase from ₹1,617.70 crore reported in Q2FY23. These expenses were also 3 percent higher than the ₹1,830.83 crore recorded in the June 2023 quarter.

The results further indicated that the lender's annualized net interest margin for the September 2023 quarter was 4.33 percent, as compared to 5.80 percent in Q1FY24 and 4.37 percent in Q2FY23.

In the most recent market session on October 20, IDBI Bank's shares closed at ₹67 apiece on the BSE, representing a 2.33 percent decrease from the previous day's closing price.

First Published:Oct 21, 2023 6:05 PM IST