NEW DELHI: IDBI Bank on Monday reported a robust 31% year-on-year increase in net profit, reaching ₹1,908 crore for the December 2024 quarter. The rise in profit was attributed to reduced provisioning and higher interest income. In the same period last year, the LIC-controlled bank had recorded a net profit of ₹1,458 crore.
According to the bank’s regulatory filing, total income for the quarter climbed to ₹8,565 crore, compared to ₹7,514 crore in the corresponding quarter of the previous fiscal year. The interest income improved significantly, rising to ₹7,816 crore from ₹6,541 crore in the year-ago period.
Net interest income (NII) also saw an upswing, increasing to ₹4,228 crore in Q3 FY25, compared to ₹3,435 crore in Q3 FY24.
Asset quality showed a marked improvement, with the gross non-performing asset (NPA) ratio declining to 3.57% as of December 31, 2024, from 4.69% a year earlier. Similarly, the net NPA ratio fell to 0.18%, compared to 0.34% at the end of December 2023.
As a result of better asset quality, the bank’s provisioning and contingencies for the quarter were reduced to ₹166 crore, down from ₹320 crore in the same period last fiscal. The provision coverage ratio, including technical write-offs, improved to 99.47% as of December 31, 2024, from 99.17% a year ago.
The bank’s capital adequacy ratio rose to 21.98% during the quarter, up from 20.32% at the end of December 2023.
In addition, the board approved the sale of IDBI Bank’s entire 21.14% stake in Pondicherry Industrial Promotion Development and Investment Corporation Ltd (PIPDIC), consisting of 8,54,000 shares with a face value of ₹100 each.
The government, which owns over 45% of IDBI Bank, is planning to divest its stake, with the process expected to accelerate in the next fiscal year. Meanwhile, LIC, which holds a 49.24% stake in the bank, is reportedly keen on retaining a strategic shareholding to benefit from the bancassurance channel.
