IDBI Bank Garners 46% Rise In Q2 PAT At <span Class='webrupee'>₹</span>828 Cr, Asset Quality Improves

Net interest income (NII) which is the difference between interest earned and interest expended, stood at ₹2,738 crore in Q2FY23 up by 48% from ₹1,854 crore in Q2FY22 and higher by 10% from ₹2,488 crore in Q1FY23. Net interest margin (NIM) expanded by 135 basis points yoy and 35 basis points qoq to 4.37%.

The bank's operating profit bettered by 64% to ₹2,208 crore in Q2FY23 against ₹1,346 crore for Q2FY22. Operating profit was at ₹2,052 crore for Q1FY23.

The bank's provisions were at ₹1,380 crore in Q2 of this fiscal increasing by 77% yoy and 7% qoq. The Provision Coverage Ratio (including Technical Write-Offs) improved to 97.86% as on September 30, 2022, from 97.27 % as on September 30, 2021. PCR stood at 97.79% in the preceding quarter.

In terms of asset quality, the gross NPA of the bank stood at 16.51% as of September 30, 2022, as against 21.85% in Q2FY22 and 19.90% in Q1FY23. Net NPA was at 1.15% in Q2FY23 versus 1.71% in Q2FY22 and 1.25% in Q1FY23.

Further, in Q1FY23, the bank's net advances jumped by 17% yoy to ₹1,46,752 crore from ₹1,25,011 crore in Q2FY22 and up by 6% compared to ₹1,38,046 crore in Q1FY22. The composition of corporate versus retail in the gross advances portfolio was at 35:65 as on September 30, 2022, as against 37:63 as on June 30, 2022.

However, deposits climbed by 3% to ₹2,30,310 crore in Q2FY23 against ₹2,23,305 crore in Q2FY22. Compared to Q1FY23 where deposits stood at ₹2,25,269 crore, the bank posted a 2% growth. Share of CASA in total deposits improved to 56.19% as on September 30, 2022, as against 54.63% as on September 30, 2021, and 55.65% as on June 30, 2022.

On BSE, IDBI Bank traded at ₹44.85 apiece on Friday broadly flat compared to the previous day's closing of ₹44.95 apiece.