IDBI Bank Q3 Net Profit Jumps 31% to ₹1,908 Crore, NII Rises 23%
Strong Q3 Performance
Private sector lender IDBI Bank reported a robust 31% year-on-year increase in its standalone net profit, reaching ₹1,908.27 crore for the third quarter ended December 31, 2024. This is a substantial increase from the ₹1,458.18 crore net profit reported in the same quarter of the previous year.
Increase in Total Income
The bank's total income also increased significantly to ₹8,564.92 crore in the third quarter of the current fiscal year, up from ₹7,514.27 crore in the corresponding period last year, according to a regulatory filing by IDBI Bank.
Growth in Interest Income
During the quarter, the bank’s interest income rose to ₹7,815.57 crore, compared to ₹6,540.86 crore in the same period last fiscal. The bank's Net Interest Income (NII) grew by 23.1% to ₹4,228.22 crore, up from ₹3,434.47 crore in the same quarter of FY24.
Asset Quality Improvement
IDBI Bank’s asset quality also showed improvement, with the gross Non-Performing Asset (NPA) moderating to 3.57% of total advances as of December 2024, down from 4.69% at the end of December 2023. Similarly, the net NPA declined marginally to 0.18%, compared to 0.34% at the end of December 2023.
Reduced Provisions and Contingencies
Provisions and contingencies for the third quarter of FY25 declined to ₹165.60 crore, compared to ₹319.85 crore in the same quarter of the previous financial year. The Net Interest Margin (NIM) for the third quarter of 2024-25 stood at 5.17%.
Growth in CASA and Net Advances
The bank’s CASA (Current Account Savings Account) increased to ₹1,30,899 crore from ₹1,28,962 crore year-on-year, reporting a growth of 2%. The CASA ratio stood at 46.35%. The net advances grew by 18% year-on-year to ₹2,06,807 crore as of December 31, 2024, compared to ₹1,75,001 crore as of December 31, 2023.
Increase in Total Deposits and Operating Profit
The total deposits increased to ₹2,82,439 crore as of December 31, 2024, from ₹2,58,442 crore as of December 31, 2023, representing a growth of 9%. The operating profit stood at ₹2,802 crore, a 20% year-on-year increase. The Provision Coverage Ratio (including Technical Write-Offs) improved to 99.47% as of December 31, 2024, from 99.17% as of December 31, 2023.
Stock Performance
Shares of the company settled 1.58 percent higher at ₹85.34 per share on the NSE.
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