IDBI Bank Q2 profit surges 75% to Rs 567 crore

 IDBI Bank on Thursday reported a 75 per cent jump in net profit to Rs 567 crore for the second quarter ended September 30.

The LIC-controlled bank had earned a net profit of Rs 324 crore in the same period (July-September) of the last fiscal.

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However, the total income fell 10 per cent to Rs 5,000.64 crore during the quarter, compared to Rs 5,569.35 crore in the year-ago period, the private sector bank said in a statement.

The net interest income grew 9 per cent to Rs 1,854 crore during the reported quarter against Rs 1,695 crore a year ago.

Net Interest Margin (NIM) improved by 32 basis points to 3.02 per cent, compared to 2.70 per cent in the second quarter last fiscal, IDBI Bank said.

The lender's stressed assets ratio also improved, with gross non-performing assets (NPAs) declining to 20.92 per cent of gross loans as of September 30, 2021, against 25.08 per cent a year ago. Net NPAs improved to 1.62 per cent from 2.67 per cent.

Provisions for bad loans and contingencies rose to Rs 434.47 crore for the September quarter from Rs 389.44 crore in the year-ago period.

"As of September 30, 2021, the bank had COVID-19 related provisions of Rs 863 crore (other than provisions held for restructuring under COVID-19 norms). The provision made by the bank is more than minimum required as per the RBI guidelines," the lender said.

The provision coverage ratio, including technical write-offs, stood at 97.27 per cent as of September 30, 2021.