IDBI Bank Q2 Results: IDBI Bank reported a 39% increase in its net profit for the September quarter, reaching Rs 1,836 crore compared to Rs 1,323 crore in the same period last year. The net interest income (NII) rose by 26% to Rs 3,875 crore, demonstrating robust growth for the bank.
The net interest margin (NIM) improved to 4.87%, reflecting a year-on-year increase of 54 basis points. Following the earnings announcement during market hours, IDBI Bank’s stock surged by 3%, peaking at Rs 83.70 on the NSE.
The bank’s net advances reached Rs 2 lakh crore, marking a year-on-year growth of 19%. Total deposits also increased to Rs 2.77 lakh crore, up by 11%, while the current account savings account (CASA) saw a 4% rise to Rs 1.33 lakh crore.
On the asset quality front, IDBI Bank’s gross non-performing assets (NPAs) declined to 3.68%, a reduction of 122 basis points from the previous year, while net NPAs fell to 0.20%, down by 19 basis points. The provision coverage ratio improved to 99.42%, reflecting a year-on-year increase of 32 basis points.
In Q2 FY2025, the operating profit surged by 45% to Rs 3,006 crore, up from Rs 2,072 crore in Q2 FY2024. The cost-to-income ratio decreased to 42.05%, down 558 basis points from the previous year. Additionally, the bank’s long-term credit rating was upgraded to ‘AA/Stable’ from ‘AA-/Stable’, with its short-term rating reaffirmed at ‘A1+’ by major rating agencies.
