IDBI Bank Limited – Q3 Results for FY 24  

Last Updated on January 24, 2024 by BFSLTeam BFSLTeam

Key Highlights for Q3 FY 2024

• In the third quarter of the fiscal year 2024, IDBI Bank Limited has reported robust financial results, with a notable net profit exceeding Rs. 4,000 crore for the nine months ending December 2023. 
• The key highlights for Q3 FY 2024 include a YoY net profit growth of 57%, amounting to ₹1,458 crore. The operating profit has shown a significant YoY growth of 13%, reaching ₹2,327 crore. 
• Notably, the Net Interest Margin (NIM) has increased to 4.72%, reflecting a YoY growth of 13 basis points.
• Other noteworthy metrics include a 83 basis points YoY growth in the Cost of Deposit, standing at 4.34%.
• The Capital to Risk-Weighted Assets Ratio (CRAR) is reported at 20.32%, with a YoY growth of 18 basis points. 
• The Return on Assets (ROA) has witnessed a YoY growth of 48 basis points, reaching 1.70%. 
• Similarly, the Return on Equity (ROE) has surged to 19.57%, reflecting a substantial YoY growth of 361 basis points.
• The asset quality indicators show positive trends, with Net Non-Performing Assets (NPA) decreasing by 74 basis points YoY, standing at 0.34%. 
• Gross NPA has significantly reduced by 913 basis points YoY, reaching 4.69%. 
• The Provision Coverage Ratio (PCR) has increased by 119 basis points on a YoY basis, reaching an impressive 99.17%.
• Furthermore, the net profit for Q3 has surged to ₹1,458 crore, registering a remarkable YoY growth of 57%. 
• The net advances have reached ₹1,75,001 crore, reflecting an 18% YoY growth. 
• The Gross NPA has decreased to 4.69%, marking a reduction of 913 basis points YoY, while the Net NPA has decreased by 74 basis points YoY, standing at 0.34%. 
• The Provision Coverage Ratio (PCR) is robust at 99.17%. The Capital Adequacy Ratio (CRAR) is reported at 20.32%, and the Current and Savings Account (CASA) Ratio stands at 49.88%.

Additional Read: Q3 Results Dashboard

Operating Performance for Q3 FY 2024:

• The net profit demonstrated a substantial 57% increase to ₹1,458 crore in Q3-2024, compared to ₹927 crore in Q3-2023.
• Profit Before Tax (PBT) exhibited a remarkable 58% improvement, reaching ₹2,007 crore in Q3-2024, compared to ₹1,267 crore in Q3-2023.
• Operating profit experienced a 13% YoY growth, totaling ₹2,327 crore in Q3-2024, as opposed to ₹2,051 crore in Q3-2023.
• Net Interest Income (NII) witnessed a robust 17% YoY growth, reaching ₹3,435 crore in Q3-2024, compared to ₹2,925 crore in Q3-2023.
• The Net Interest Margin (NIM) stood at 4.72% in Q3-2024, a slight increase from 4.59% in Q3-2023.
• Notably, the Cost to Income Ratio stood at 47.22% in Q3-2024.

Business Growth:

• Net advances demonstrated a commendable 18% YoY growth, reaching ₹1,75,001 crore as of December 31, 2023, compared to ₹1,48,384 crore as of December 31, 2022.
• The composition of corporate versus retail in the gross advances portfolio was at 29:71 as of December 31, 2023, compared to 33:67 in December 31, 2022.
• Total deposits grew by 11% YoY, amounting to ₹2,58,525 crore as of December 31, 2023, compared to ₹2,32,671 crore in December 31, 2022.

Asset Quality:

• The Gross NPA ratio significantly declined to 4.69% as of December 31, 2023, from 13.82% as of December 31, 2022.
• The Net NPA ratio also experienced a notable decline to 0.34% as of December 31, 2023, from 1.08% as of December 31, 2022.
• The Provision Coverage Ratio (including Technical Write-Offs) improved to an impressive 99.17% as of December 31, 2023, from 97.98% in December 31, 2022.

Capital Position:

• Tier 1 capital improved to 18.04% as of December 31, 2023, compared to 17.60% as of December 31, 2022.
• The Capital Adequacy Ratio (CRAR) increased to 20.32% as of December 31, 2023, compared to 20.14% as of December 31, 2022.

Significant Developments:

• IDBI Bank received an upgraded Long term Rating to AA-/stable from A+ by all rating agencies.
• The bank entered into a Memorandum of Understanding (MoU) with Maruti Suzuki India Ltd for Inventory Financing.
• It achieved recognition in various categories at the 18th Annual Summit & Awards organised by ASSOCHAM.
• IDBI Bank went live on Swift India Inter Bank Trade platform, enhancing transaction capabilities.
• The bank’s Business Continuity Management System obtained ISO 22301:2019 certification.
• An MOU with Kerala State Financial Enterprises (KSFE) was signed for payment gateway solutions under IDBI Quick iPay.

Additional Read: IDBI Bank Share Price

Financial Approval:

• The Board of Directors of IDBI Bank Ltd. approved the financial results for the Quarter and Nine months ended December 31, 2023, in a meeting held in Mumbai on January 20, 2024.

About IDBI Bank Ltd.

IDBI Bank Ltd. operates as a full-service universal bank, inheriting a legacy from the Industrial Development Bank of India. Initially a Development Financial Institution (DFI), IDBI expanded beyond project financing, contributing to industry development and fostering a vibrant capital market. In 2004, it transformed into IDBI Ltd., merging subsidiaries and later renaming itself IDBI Bank Ltd. The bank, committed to growth, offers a wide range of products and services, including capital market and mutual fund business. With a focus on customer convenience and excellence, IDBI Bank aims to emerge as the most preferred and trusted bank for all stakeholders.

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