IDBI Bank shares fall 6% despite rise in profits as core income falls 24%
Net interest income fell 24.1% year-on-year to Rs 3,209.4 crore, reflecting lower interest earned and elevated funding costs.
Interest earned declined to Rs 7,073.6 crore from Rs 7,815.6 crore a year ago, while interest expended rose to Rs 3,864.1 crore from Rs 3,587.4 crore.
Sequentially, NII slipped 2.3%.On the balance sheet, deposits rose 9% year-on-year to Rs 3.08 lakh crore, while advances grew 15.5% to Rs 2.39 lakh crore.Other income rose 61.3% to Rs 1,208.9 crore from Rs 749.4 crore a year earlier, providing a buffer to earnings.
Operating expenses increased 15% to Rs 2,501 crore, driven mainly by higher employee costs.The bank reported a provision write-back of Rs 541.6 crore in the quarter, compared with a provision expense of Rs 165.6 crore in the year-ago period.
Provisions for NPAs saw a reversal of Rs 603.4 crore.
Tax expense declined 28.1% to Rs 523.4 crore.Asset quality improved, with gross NPAs declining to Rs 6,280.9 crore, or 2.57% of advances, from Rs 7,634.8 crore, or 3.57%, a year earlier.
Net NPA ratio stood at 0.18%, unchanged from a year ago.The capital adequacy ratio under Basel III stood at 24.63%, with CET 1 at 23.53%.
Net interest margin narrowed to 3.52% from 5.17% a year earlier.
