IDBI Bank Q4 Results: Profit surges 35% YoY to Rs 691 cr, asset quality improves; stock surges over 3.5% intraday

State-owned public lender IDBI Bank on Monday reported a robust set of earnings in the fourth quarter of the financial year 2021-22 (Q4FY22). Both the top and bottom lines reported double-digit growth during the quarter, and asset quality improved year on year (YoY) and sequentially. 

According to IDBI Bank’s filing to exchanges, “Net Profit improved by 35 per cent for Q4FY22 to Rs 691 crore as against Rs 512 crore for Q4FY21. While its Net Interest Income (NII) stood at Rs 2,420 crore for Q4FY22 as against Rs 3,240 crore for Q4FY21.” 

Excluding interest income of Rs 1,313 crore on Income Tax refund for Q4FY21 the NII for QFY22 increased by 26 per cent YoY, the regulatory filing said. 

The bank’s Net Interest Margin (NIM) stood at 3.97 per cent from 3.88 per cent sequentially, while its gross non-performing assets (GNPA) improved to 19.14 per cent as on March 31, 2022 against 22.37 per cent YoY and 20.56 per cent quarter-on-quarter (QoQ). 

Similarly, the bank’s Net NPA ratio improved as well, to 1.27 per cent in Q4FY22 as against 1.97 per cent YoY and 1.70 per cent QoQ. Provision Coverage Ratio (PCR) (including Technical Write-Offs) improved to 97.63 per cent in Q4FY22 from 96.90 and 97.10 per cent YoY and Q0Q respectively. 

Immediate after its results announcement, the stock of the public lender surged over 3.5 per cent to touch a day’s high level of Rs 46.95 per share on the BSE intraday. A spike on the chart of IDBI bank shows the buying interest in the stock immediately after March quarter earnings.  

IDBI Bank has come into focus with the launch of the initial public offer of Life Insurance Corporation of India (LIC), which shall start on May 4 and will end on May 6, 2022. LIC is one of the largest stakeholders in IDBI Bank after the government, it holds over 49 per cent stake in the bank. 

During an interview with news agency PTI, LIC Chairman MR Kumar said, the insurer along with the government will also divest its stake in IDBI Bank but may not exit the bank completely. IDBI Bank became a subsidiary of LIC with effect from January 21, 2019.