IDBI Bank reports 125% increase in Q2 net profit at Rs324cr

IDBI Bank reports 125% increase in Q2 net profit at Rs324cr

IDBI Bank reported a net profit of Rs324cr for Q2FY21 against net loss Rs3,459cr for Q2FY20 in the financial results for the quarter ended September 30 on Friday. The Bank reported 125% sequential jump in net profit when compared to Rs144cr reported in the June quarter.

The Bank registers Profit Before Tax (PBT) of Rs665cr for Q2FY21 against Loss Before Tax of Rs4,632cr for Q2FY20. Operating Profit for Q2FY21 is Rs1,246cr, yoy growth of 23%.

The Bank’s Net Interest Income in the quarter stood at Rs1,695cr for Q2FY21, yoy growth of 4%. NIM at 2.70% for Q2FY21, yoy growth of 37 bps.

Gross NPA ratio improved to 25.08% as on September 30, 2020 as against 29.43% as on September 30, 2019 and 26.81% as on June 30, 2020. Net NPA ratio improved to 2.67% as on September 30, 2020 as against 5.97% as on September 30, 2019 and 3.55% as on June 30, 2020.

Provision Coverage Ratio (including Technical Write-Offs) improved to 95.96% as on September 30, 2020 from 91.25% as on September 30, 2019 and 94.71% as on June 30, 2020.

In accordance with the RBI guidelines relating to Covid-19, the Bank has granted a moratorium on the payment of installments and or interest, as applicable, falling due between March 1, 2020 and August 31, 2020 (moratorium period) to eligible borrowers classified as Standard, even if overdue, as on February 29, 2020, without considering them as restructuring.

Bank has made Covid-19 related provision of Rs247cr in March 2020 quarter and Rs189cr in June 2020 quarter. Cumulative Covid-19 related provision was Rs436cr as at September 30, 2020.

IDBI Bank Ltd ended at Rs39.75 up by Rs0.55 or 1.4% from its previous closing of Rs39.20 on the BSE.