IDBI Bank

IDBI Bank has reported 31% growth in net profit at Rs 1908.27 crore for the quarter ended December 2024 (Q3FY2025). The bank has posted healthy 23% growth in net interest income (NII), while the core fee income of the bank rose 5% in Q3FY2025. The Net Interest Margin (NIM) of the bank improved to 5.17% in Q3FY2025 compared to 4.72% in the corresponding quarter of previous year.

On business front, the bank as has posted 12% growth in business with strong 17% surge in loan book. The asset quality of the bank has continued to improve in Q3FY2025. Bank has substantially raised the credit to deposit ratio to 75.8% at end December 2024 from 70.8% at end December 2023. However, the CASA ratio of the bank has declined to 46.3% at end December 2024 from 49.9% at end December 2023.

Asset quality improves: The bank has continued to improve asset quality in Q3FY2025.

The fresh slippages of loans stood at Rs 524 crore in Q3FY2025 compared with 393 crore in previous quarter and Rs 614 crore in the corresponding quarter last year.

The recoveries of NPAs stood at Rs 212 crore, upgradations at Rs 133 crore and the write-off of loans was at Rs 196 crore in Q3FY2025.

Provision coverage ratio was robust at 99.47% at end December 2024 compared to 99.42% a quarter ago and 99.17% a year ago.

The capital adequacy ratio of the bank stood at 22.0% with Tier I ratio at 19.9% at end December 2024.

The risk weighted assets of the bank has increased 9% YoY to Rs 187678 crore end December 2024,

Asset Quality Indicators: IDBI Bank
'	Dec-24	Sep-24	Jun-24	Mar-24	Dec-23	Variation
						QoQ	YTD	YoY
Gross NPA (Rs Crore)	7634.75	7653.13	7795.42	8916.84	8589.40	0	-14	-11
Net NPA (Rs Crore)	365.46	401.60	453.57	643.83	593.34	-9	-43	-38
% Gross NPA	3.57	3.68	3.87	4.53	4.69	-11	-96	-112
% Net NPA	0.18	0.20	0.23	0.34	0.34	-2	-16	-16
% PCR	99.47	99.42	99.34	99.09	99.17	5	38	30
% CRAR - Basel III	21.98	21.98	22.42	22.26	20.32	0	-28	166
% CRAR - Tier I - Basel III	19.91	19.89	20.26	20.11	18.04	2	-20	187
Variation in basis points for figures given in percentages and in % for figures in Rs crore

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Business Highlights:

Healthy business growth: The business of the bank has increased 12% YoY to Rs 496515 crore end December 2024, driven by 17% surge in advances to Rs 214076 crore. Deposits rose 9% to Rs 282439 crore at end December 2024.

CASA deposits ratio declines: The CASA deposits of the bank increased 2% YoY to Rs 130899 crore at end December 2024. The current account deposits increased 11% to Rs 47819 crore, while saving account deposits fell 3% to Rs 83080 crore end December 2024. The CASA ratio declined to 46.3% at end December 2024 compared to 49.9% at end December 2023, while declined from 48.1% a quarter ago. The term deposits have increased 17% to Rs 151540 crore end December 2024.

Strong loan growth: Advances growth was driven by retail loans rising 19% YoY to Rs 124857 crore at end December 2024, while credit to agriculture increased 4% to Rs 11601 crore and MSME 16% to Rs 16261 crore at end December 2024. The corporate credit has also jumped 15% to Rs 61356 crore end December 2024.

Investment book of the bank rose 3% YoY to Rs 120230 crore at end December 2024. The SLR book moved up 5% to Rs 90519 crore, while non SLR book declined 2% to Rs 33217 crore at end December 2024. The AFS book dipped 42% to Rs 23301 crore, while HTM book rose 12% to Rs 79309 crore at end December 2024. The duration of the overall investment portfolio stood at 3.99 years and AFS portfolio at 3.15 years end December 2024.

Margins improve: The bank has showed 29 bps YoY jump in cost of deposits to 4.63%, while yield on advances declined 78 bps YoY to 9.69% in Q3FY2025. NIM has improved 45 bps YoY to 5.17% in Q3FY2025.

Book value of the bank stood at Rs 44.0 per share at end December 2024, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 43.6 per share at end December 2024.

Quarterly Performance

NII rises as NIM improves: Bank has recorded 19% increase in the interest earned at Rs 7815.57 crore, while interest expenses increased 15% to Rs 3587.35 crore in Q3FY2025. NII improved 23% to Rs 4228.22 crore in the quarter ended December 2024.

Healthy growth in the core fee income: Bank has posted strong 5% growth in core fee income to Rs 507 crore, while the recoveries jumped 30% to Rs 118 crore and forex income 57% to Rs 132 crore, and other income 133% to Rs 21 crore. However, the treasury segment witnessed loss of Rs 29 crore in Q3FY2025 against profit of Rs 305 crore in Q3FY2024, leading to 23% dip in the overall non-interest income to Rs 749.35 crore in the quarter ended December 2024.

Expenses ratio improves: The operating expenses of the bank increased 5% to Rs 2175.65 crore, as other expenses moved up 15% to Rs 1137.8 crore, while employee expenses declined 5% to Rs 1037.85 crore in Q3FY2025. Cost to income ratio improved to 43.7% in Q3FY2025 compared with 47.2% in Q3FY2024, helping the Operating Profit to increase 20% to Rs 2801.92 crore.

Provisions and contingencies decline: The bank has showed 48% decline in provisions to Rs 165.60 crore. The loan loss provisions rebounded to Rs 122 crore and standard asset provisions to Rs 70 crore. However, the investment provisions fell 85% to Rs 44 crore and the bank has written back other provisions of Rs 70 crore.

Effective tax rate rose to 27.6% in Q3FY2025 from 27.3% in Q3FY2024. Net Profit increased 31% YoY to Rs 1908.27 crore during quarter ended December 2024.

Financial Performance 9MFY2025:

Bank has posted 36% increase in net profit to Rs 5464.00 crore in the nine months ended December 2024 (9MFY2025). The net interest income increased 8% to Rs 11336.53 crore, while non-interest income moved up 6% to Rs 2867.34 crore, pushing up net total income by 7% to Rs 14203.87 crore in 9MFY2025. The operating expenses increased 9% to Rs 6320.07 crore, while provision and contingencies dipped 78% to Rs 277.33 crore, allowing profit before tax to increase 24% to Rs 7606.47 crore in 9MFY2025. The cost-to-income ratio rose to 44.5% in 9MFY2025 compared to 43.9% in 9MFY2024. An effective tax rate declined to 28.2% in 9MFY2025 compared to 34.7% in 9MFY2024. The net profit has increased 36% to Rs 5464.00 crore in 9MFY2025.

IDBI Bank: Results
Particulars	2412 (3)	2312 (3)	Var %	2412 (9)	2312 (9)	Var %	2403 (12)	2303 (12)	Var %
Interest Earned	7815.57	6540.86	19	21923.39	19435.66	13	26426.13	20569.78	28
Interest Expended	3587.35	3106.39	15	10586.86	8937.11	18	12239.69	9139.23	34
Net Interest Income	4228.22	3434.47	23	11336.53	10498.55	8	14186.44	11430.55	24
Other Income	749.35	973.41	-23	2867.34	2714.74	6	3610.91	4371.98	-17
Net Total Income	4977.57	4407.88	13	14203.87	13213.29	7	17797.35	15802.53	13
Operating Expenses	2175.65	2081.33	5	6320.07	5796.35	9	8205.29	7066.70	16
Operating Profits	2801.92	2326.55	20	7883.80	7416.94	6	9592.06	8735.83	10
Provisions & Contingencies	165.60	319.85	-48	277.33	1282.82	-78	1396.64	3497.86	-60
Profit Before Tax	2636.32	2006.70	31	7606.47	6134.12	24	8195.42	5237.97	56
Provision for tax	728.05	548.52	33	2142.47	2128.49	1	2561.33	1592.88	61
PAT	1908.27	1458.18	31	5464.00	4005.63	36	5634.09	3645.09	55
EPS*(Rs)	7.1	5.4	'	6.8	5.0	'	5.2	3.4	'
Adj BV (Rs)	43.6	36.5	'	43.6	36.5	'	38.3	32.9	'
* Annualized on current equity of Rs 10752.4 crore. Face Value: Rs 10, Figures in Rs crore
Source: Capitaline Corporate Database

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