Last Updated on October 26, 2023 by BFSLTeam BFSLTeam
On October 21, 2023: IDBI Bank (BSE, NSE: IDBI) announced its Q2 2023-24 financial results, with the positivity of sustained healthy financials and strength in the overall operations of the company. On the path of a robust operating momentum, the bank is poised, as of Q2, to go further ahead on its growth journey.
Table of Content
Notable Highlights
Some of the key metrics shedding light on the general performance of the bank in Q2 are mentioned below:
- In terms of profitability, the PAT for Q2 was at ₹1,323 crore, showing an uptick of 8% QoQ and 60% YoY. PBT is at the position of ₹2,299 crore, up by 26% QoQ, and a rise of 60% YoY.
- Profit is also reflected in the bank’s Q2 Operating Profit at ₹2,072 crore, NII at ₹3,067 crore (up by 12% YoY, NIM at 4.33%, and Cost to Net Income Ratio or CIR standing at 47.63%.
- With regard to IDBI Bank’s performance, business-wise, there was a focus on granularity. The CASA stands at ₹128464 crore, the percent of CASA being 51.49%.
- Further, on the retail side, Corporate advances (Gross Advances) were at a ratio of 70:30 in Q2 FY 23-24, relative to 65:35 in Q2 FY 22-23. Net Advances were placed at ₹168502, with a corresponding growth of 2% QoQ, and 15% YoY.
- Significantly, Q2 experienced an improving trend in asset quality with a Net NPA at 0.39%, a decrease of 5 bps QoQ and 77 bps YoY. The GNPA was 4.90%, reduced by 15 bps QoQ and 1161 bps YoY.
- The bank showed adequate capitalisation in Q2 with Tier 1 capital up by 93 bps QoQ and 181 bps YoY, with capitalisation itself at 18.86%. The total CRAR stood at 21.26%, reflecting a rise of 93 bps QoQ and 178 bps YoY.
Additional Read: Q2 Results Dashboard
Maintenance of a Digital Footprint
In Q2 FY23-23, IDBI Bank witnessed a record 97% of customer transactions taking place through digital channels. These are all customer-induced operations and for the most part, include UPI and ATM transactions.
IDBI Bank Q2 FY23-24 Key Financials
(Denominations shown in ₹ crore, unless indicated by %)
| Metrics | Q2 FY22-23 | Q1 FY23-24 | Q2 FY23-24 | YoY % | QoQ % |
| Net Interest Income | 2,738 | 3,998 | 3,067 | 12 | (23) |
| Net Total Income | 3,825 | 4,850 | 3,956 | 3 | (18) |
| Operating Profit | 2,208 | 3,019 | 2,072 | (6) | (31) |
| Profit Before Tax (PBT) | 1,437 | 1,828 | 2,299 | 60 | 26 |
| Profit After Tax (PAT) | 828 | 1,224 | 1,323 | 60 | 8 |
Looking Ahead from Q2
After the bank’s experience in a positive quarter and a promising Q2 result, IDBI Bank plans to explore more avenues for growth in the coming quarters with targets set at 14% on the outer limit. The focus of the bank is on maximising fee income and maintaining an NIM over 3.50%. According to the bank’s plans, it wishes to maintain the corporate-to-retail ratio at a balanced 35:65. The bank also plans to bring GNPA down with a target for recovery set at ₹3,000 crore. In other plans, the ROA and ROE may be maintained at 1.20% and 14%, respectively. The bank has strategies to collaborate with Fintechs for scaling up business sourcing under the segments of Educational Loans and Personal Loans.
Also Read: IDBI Bank Share Price
About IDBI Bank
With 55-plus years of offering banking solutions, since 1964, IDBI Bank is a truly universal banking entity. With above 1900 branches across India, IDBI Bank boasts a balance sheet worth ₹3,30,502 crore. The bank serves customers from all segments of the Indian population, hoping to widen its reach with each passing year. It is fortunate enough to inherit a reputed legacy from its predecessor, the Industrial Development Bank of India. This was an enterprise classified as an apex Development Financial Institution that operated from 1964 to 2004.
At the time, this institution went beyond mere project financing to cover a variety of services that stretched beyond industries, both in terms of geography and sectors. The entity sought to reach backward areas and spread financing to rural and at the time, untouched potential financial spheres of India. In 2004, when this entity transformed itself into IDBI Ltd, it embarked upon the total gamut of services in banking and finance. To inspire and boost growth, it merged its subsidiaries into a holistic corporation, IDBI Bank. As a full-fledged banking corporation, IDBI literally touches millions of Indian lives today. It has an established presence in the banking sector as well as related financial services and products like
Investment banking and mutual funds. Constantly working toward its commitment to customers, digitally and socially, IDBI Bank seeks to be the preferred bank of the Indian populace.
Source:
https://www.idbibank.in/pdf/financialresulats/Financial-Results-September-2023.pdf
