IDBI Bank has been profitable since March 2020, Q2 saw highest profit, says MD & CEO Rakesh Sharma

IDBI Bank: IDBI has been making profit continuously since March 2020, bank's MD & CEO Rakesh Sharma told Zee Business in an exclusive interview.

“Not just the second quarter, the IDBI Bank has been making profit since March 2020 and has seen growth in each quarter. Of course, the September quarter saw the highest profit so far,” he said.

Further, he stated the reasons for growth of IDBI Bank and said that all segments have seen growth.

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“We have seen a growth in advances and have a good control on the cost of deposit. Right now, the cost of deposit is 3.52 per cent, which is low. Also, the quality of advances is maintained.”

He added that the Special Mention Account (SMA), assets/accounts that show symptoms of bad asset quality in the first 90 days itself or before it is identified as Non-Performing Asset (NPA), is also declining.

Talking about IDBI Bank's FY23 outlook, he said that the management will try to lower the Gross NPA below 10 per cent.

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“In terms of NPA, we have partly recovered some amount and written off some. We have also initiated the process of transferring the National Asset Reconstruction Company Limited (NARCL) account. In this process, we have identified 10,000 to 11,000 accounts amongst which 6,000 to 7,000 accounts were live accounts,” he stated, and added that they have transferred a sizeable account in the NARCL last week.

Expert call on IDBI Bank

#ResultsOnZee | IDBI बैंक का दमदार प्रदर्शन

दिसंबर तिमाही में रिकॉर्ड मुनाफा

मार्च 2020 से बैंक को लगातार मुनाफा

देखिए नतीजों पर #IDBIBank के MD & CEO राकेश शर्मा से खास बातचीत

#Q3Results #Q3FY23 @IDBI_Bank @Ektaexplores #RakeshSharma #AnilSinghvi pic.twitter.com/S40sK1vMgu

— Zee Business (@ZeeBusiness) January 24, 2023

Shivangi Sarda, Research Analyst at Motilal Oswal, has recommended ‘Hold’ on IDBI Bank shares at a target price of Rs 56/57 with a Stop Loss of Rs 53 apiece.

She said that the chart of the stock has a positive structure, but is showing range-bound movement. She added that the long-term chart looks promising.

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