IDBI Bank on May 2 clocked a massive 35 percent year-on-year growth in standalone profit for the quarter ended March 2022, largely driven by lower provisions with improvement in asset quality, but net interest income declined sharply due to inclusion of interest on income tax refund in corresponding quarter’s numbers.
Standalone profit for the quarter stood at Rs 691 crore, up from Rs 512.2 crore a year ago, said the bank in its BSE filing, while its net interest income, or the difference between interest earned and interest expenses, fell 25 percent to Rs 2,420.5 crore during the period due to high base.
“Excluding interest income of Rs 1,313 crore on income tax refund for Q4FY21, the net interest income for Q4FY22 increased by 26 percent over Q4FY21. NII stood Rs 2,383 crore for Q3FY22,” said IDBI Bank, adding net interest margin improved by 92 bps YoY and 9 bps QoQ.
Loan book at Rs 1.78 lakh crore as of March 2022 has grown by 10 percent compared to year-ago period and the sequential growth was 6.5 percent, while deposits grew 1 percent year-on-year to Rs 2.33 lakh crore during the quarter and it increased by 4.75 percent on sequential basis, the bank said.
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The bank further said cost of deposit in last quarter of FY22 reduced by 48 bps to 3.43 percent and cost of funds dropped by 47 bps to 3.69 percent compared to year-ago period.
Provisions and contingencies at Rs 669.2 crore for the March 2022 quarter fell 72 percent compared to year-ago period and the sequential decline in the same was 16.5 percent.
On the asset quality front, gross non-performing assets as a percentage of gross advances declined 142 bps sequentially to 19.14 percent and the net NPA dropped 43 bps to 1.27 percent in the same period.
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Other income, also known as non-interest income, fell 24 percent year-on-year to Rs 844.4 crore in the quarter ended March 2022, while pre-provision operating profit dropped 46 percent YoY to Rs 1,513 crore during the same period as in Q4FY21, there was an inclusion of interest income on income tax refund.
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