Business

Massive fall in bad loan pile, higher margins boost IDBI Q4 net income by 44%

For the full year, the bank said its net income jumped 55 percent to Rs 5,634 crore.

Benn Kochuveedan

MUMBAI: A massive fall in bad loan numbers along with robust margins boosted the LIC controlled IDBI Bank’s net income by a healthy 44% in the March quarter to Rs 1,628 crore as against Rs 1,133 crore a year ago.

The city headquartered bank which had more than a third of its assets as dud loans a few years back said its gross NPA ratio plunged to 4.53 from 6.38. The net NPA improved much better falling to 0.34 from 0.92 which is better than most of its private sector peers, leave alone the state run lenders.

Accordingly, the provision coverage ratio too improved to 99.09 from 97.94 for the reporting period.

For the full year, the bank said its net income jumped 55 percent to Rs 5,634 crore.

The cost of deposits stood at 4.30 percent, up from 3.71 percent, and the cost of funds rose to 4.74 percent from 3.96 percent.

For the reporting quarter, net interest income improved by 12% to ₹3,688 crore as against ₹3,280 crore.

Total deposits rose to ₹2,77,657 crore as against ₹2,55,490 crore, of which the low cost CASA increased to ₹1,40,027 crore and CASA ratio stood at 50.43.

Net advances grew 16% to ₹1,88,621 crore as against ₹1,62,568 crore. The composition of corporate and retail advances portfolio stood at 30:70.

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