IDBI Bank’s Q2FY25 net profit up 39% at ₹1,836 cr

IDBI Bank reported a robust 39 per cent increase in second quarter (Q2FY25) standalone net profit at ₹1,836 crore on the back of healthy growth in net interest income as well as other income despite a rise in provisions for standard assets.

The private sector lender had reported a net profit of ₹1,323 crore in the year ago quarter.

Net interest income (difference between interest earned and interest expended) in the reporting quarter was up about 26 per cent y-o-y at ₹3,875 crore (₹3,066 crore in the year ago period).

Also read: IDBI Bank employees protest sale, call for DIPAM to ensure government retains majority stake Other income, including fee-based income, treasury income, and the recovery in written-off accounts, rose about 48 per cent y-o-y to ₹1,313 crore (₹889 crore).

While the bank received a write-back of ₹165 crore from provisioning for non-performing assets (NPAs) against a write-back of ₹113 crore in Q2FY24, the provisioning for standard assets jumped to ₹1,147 crore against a write-back of ₹260 crore in Q2FY24.

Provisions towards bad debts written-off rose to ₹307 crore (₹84 crore).

Net interest margin (NIM) improved to 4.

87 per cent against 4.

33 per cent in the year ago period.

Gross Non-Performing Assets (NPAs) position improved to 3.

68 per cent of gross advances as at September-end 2024, compared to 4.

90 per cent as of September-end 2023.

The net NPAs position also improved slightly to 0.

20 per cent of net advances, compared to 0.

39 per cent.

Net advances increased by about 19 per cent y-o-y to ₹2,00,944 crore at September-end 2024.

Total deposits increased by 11 per cent y-o-y to ₹2,77,602 crore.