IDBI Bank Q2 profit jumps 39% to Rs 1,836 crore on robust interest income

IDBI Bank reported a robust 39 per cent jump in net profit to Rs 1,836 crore for the quarter ending September 30, 2024, compared to Rs 1,323 crore in the same period last year. This impressive growth was primarily driven by improved interest income, according to the bank’s regulatory filing.

The bank’s total income surged to Rs 8,754 crore from Rs 6,924 crore a year earlier, reflecting its strengthened performance. Net interest income also showed a solid 26 per cent increase to Rs 3,875 crore for the quarter, up from Rs 3,066 crore in Q2 2023. IDBI Bank's net interest margin (NIM) rose to 4.87 per cent from 4.33 per cent in the previous year’s quarter, demonstrating enhanced profitability.

Asset quality metrics saw improvement, with gross non-performing assets (NPAs) dropping to 3.68 per cent of total advances compared to 4.90 per cent a year ago. Similarly, net NPAs declined to 0.20 per cent from 0.39 per cent, marking healthier asset quality.

In terms of capital health, the bank’s Capital Adequacy Ratio increased to 21.98 per cent, up from 21.26 per cent in September 2023, indicating strong capital reserves. The Provision Coverage Ratio (PCR), including technical write-offs, rose marginally to 99.42 per cent from 99.10 per cent.

With LIC as its controlling shareholder, IDBI Bank continues to leverage improved interest income and robust asset management, posting strong quarterly results and a positive outlook for asset quality and capital adequacy.