IDBI Bank Reports Strong Financial Performance in Q1 FY 2025

On July 22, 2024, IDBI Bank announced its financial results for the quarter that ended June 30, 2024.

Q1 FY 2025 Highlights

IDBI Bank has reported a net profit of ₹1,719 crore for Q1 FY 2025, reflecting a 40% increase from the previous year. The bank’s operating profit reached ₹2,076 crore. The Net Interest Margin (NIM) was 4.18%, and the cost of deposits was 4.58%. The CRAR stood at 22.42%, showing an increase of 209 basis points year-over-year.

The bank’s Return on Assets (ROA) improved to 1.83%, up by 34 basis points, and the Return on Equity (ROE) grew to 19.87%, up by 123 basis points from last year. The cost-to-income ratio was 48.60%. Net non-performing assets (NPA) decreased to 0.23%, compared to 0.44% on June 30, 2023, a drop of 21 basis points. Gross NPA was reduced to 3.87%, down from 5.05% on June 30, 2023, and there was a decrease of 118 basis points. The Provision Coverage Ratio (PCR) increased to 99.34% from 98.99% on June 30, 2023, an improvement of 35 basis points.

Asset Quality, Capital Position, and Significant Developments

Asset Quality: IDBI Bank’s asset quality improved, with the gross NPA ratio decreasing to 3.87% as of June 30, 2024, compared to 5.05% the previous year. The net NPA ratio also improved, dropping to 0.23% from 0.44%. The Provision Coverage Ratio (including Technical Write-Offs) increased to 99.34% from 98.99%.

Capital Position: As of June 30, 2024, the bank’s Tier 1 capital ratio increased to 20.26%, up from 17.93% the previous year. The Capital to Risk-Weighted Assets Ratio (CRAR) improved to 22.42% from 20.33%. Risk-weighted assets (RWA) stood at ₹1,77,755 crore, compared to ₹1,66,660 crore the previous year.

Significant Developments: On April 6, 2024, IDBI Bank inaugurated the IDBI Learning Center in Pune, Maharashtra, with the event led by MD & CEO Shri. Rakesh Sharma. Additionally, the bank received the ‘Best Data Quality Award’ for 2023-2024 from Transunion CIBIL in the Private Banks under the Commercial Segment category.

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