Shares of IDBI Bank jumped over 11% to hit a 52-week high of Rs 77.50 on Saturday following the company’s December quarter earnings. The lender reported a sharp 57.3% year-on-year (YoY) growth in net profit for the quarter ended December 2023 to Rs 1,458.20 crore.
The price action was amid significant volume transactions, with over 7.65 crore shares changing hands around 2:45 pm.
Net interest income, the difference between interest earned and interest expended, rose 17.4% YoY in the quarter to Rs 3,434.60 crore. Provisions in the quarter declined significantly, which aided growth in the bottom line.
Provisions and contingencies for the quarter were at Rs 320 crore, compared to Rs 784.3 crore a year ago. The bank had a reversal of provision towards non-performing assets to the tune of Rs 446 crore during the quarter.
The pre-provision operating profit increased by over 13% YoY to Rs 2,326.50 crore.
The state-owned lender saw a significant improvement in asset quality, with the gross non-performing assets as a percentage of total loans coming down to 4.69% from as high as 13.82% a year ago. It was also lower than 4.90% a quarter ago.
Similarly, the net non-performing assets ratio came down to 0.34% as of December-end, from 1.08% a year ago, and 0.39% a quarter ago.
The net interest margin for the quarter improved to 4.72% from 4.59% a year ago and 4.33% a quarter ago.
The capital adequacy ratio of the bank, as per Basel III, was 20.32% as of December end, compared to 20.14% a year ago, with the CET 1 ratio at 18.04%.
Corporate/wholesale banking business grew over 30% YoY to Rs 1,929 crore, while retail banking saw growth of 18% to Rs 7,598 crore.
The total advances as of December-end stood at Rs 1.75 lakh crore compared to Rs 1.48 lakh crore a year ago.
Also Read: IDBI Bank Q3 PAT soars 57% YoY to Rs 1,458 crore, NII rises 17%
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