IDBI Bank reports 62% rise in Q1 net profit, stock gains

Shares of IDBI Bank Ltd rose over 2% today after the LIC-owned lender reported a 62% rise in consolidated profit for the quarter ended June 2023. Net profit climbed to Rs 1224 crore in Q1 against Rs 756 crore in the corresponding period of the previous fiscal.

Operating profit climbed 47% for June quarter to Rs 3,019 crore compared to Rs 2,052 crore for Q1 of the last fiscal. Net interest income of IDBI Bank zoomed 61% in the last quarter to Rs 3,998 crore as against Rs 2,488 crore for Q1of 2023.

Net Interest Margins (NIM) rose 178 bps to 5.80% in Q1 of the current fiscal compared with 4.02% in Q1 of 2023.

IDBI Bank saw an improvement in its asset quality. Gross NPA ratio fell to 5.05% as on June 30, 2023 as against 19.90% as on June 30, 2022. Net NPA ratio too slipped to 0.44% as on June 30, 2023 against 1.26% as on June 30, 2022.

Net advances rose 20% YoY to Rs 165,403 crore as on June 30, 2023 as against Rs 1,38,223 crore as on June 30, 2022.

Provision Coverage Ratio (including technical write-offs) improved to 98.99% as on June 30, 2023 from 97.78% as on June 30, 2022

After the Q1 results, IDBI Bank shares rose 2.45% to Rs 58.85 against the previous close of Rs 57.44 on BSE. Market cap of the firm climbed to Rs 62,729 crore.

With today's rally, IDBI Bank stock has risen 6% this year. In a year, the stock has delivered returns of 59%. Total 5.49 lakh shares changed hands amounting to a turnover of Rs 3.20 crore on BSE. IDBI Bank stock hit a 52-week low of Rs 34.85 on July 27, 2022 and a 52-week high of Rs 62 on January 1, 2023.

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