IDBI Bank’s fourth quarter profit rises 35% to Rs 691 cr
IDBI Bank on Monday posted a 35% rise in net profit to Rs 691 crore for the quarter ended March 2022 due to lower provisions for bad debts as NPAs declined.
The bank had posted a net profit of Rs 512 crore for the same quarter of 2020-21.
Total revenue during the January-March period of 2021-22, however, was lower at Rs 5,444.08 crore compared to Rs 6,894.86 crore a year ago, IDBI Bank said in a regulatory filing.
The bank’s basic interest income during the period was down to Rs 4,599.67 crore from Rs 5,781.48 crore a year ago. Income from other sources was also lower at Rs 844 crore compared to Rs 1,113 crore.
The proportion of the bank’s gross bad loans or non-performing assets (NPA) fell to 19.14% of gross loans at the end of March 2022 from 22.37% in March 2021.
In terms of value, the gross NPA stood at Rs 34,115 crore against Rs 36,212 crore.
Similarly, net NPAs fell to 1.27% (Rs 1,856 crore) from 1.97% (Rs 2,519 crore).
Thus, provisions for bad debts and contingencies for the quarter have been reduced to Rs 669.23 crore from Rs 2,393.36 crore set aside by the bank for the March quarter 2020-21.
Of this amount, provisions for bad debts stood at Rs 300.61 crore, compared to Rs 1,119.65 crore.
For the full year, the bank’s net profit increased by 79% to Rs 2,439 crore from Rs 1,359 crore in 2020-21.
Total income during the year declined to Rs 22,985 crore from Rs 24,497 crore mainly due to lower interest income as well as those from other sources.
The bank said its gross advances stood at Rs 1,78,207 crore as of March 31, 2022, registering an annual growth of 10.07%.
IDBI Bank said that in the March quarter of the previous financial year, it received interest of Rs 1,313 crore on income tax refund.
The bank’s shares were trading up 0.11% at Rs 45.40 on BSE.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)