IDBI Bank Q2: NII falls but profit nearly doubles, asset quality stable

News Topical, Digital Desk : IDBI Bank has released its second quarter results. The bank's quarterly profit nearly doubled year-over-year. This increase in profits comes amid a decline in net interest income. In fact, the bank's interest income declined 5 percent year-over-year. However, non-interest income increased by 90 percent. The bank raised approximately ₹1,700 crore from the sale of more than 11 percent of its stake in the NSDL IPO, contributing to the jump in profits.

While the bank's net NPAs have stabilized, gross NPAs have declined quarter-on-quarter. On Friday, the stock closed below 92, down more than half a percent.

Results: The bank's profit in the second quarter increased 97.5% year-on-year to ₹3,627 crore. A year ago, profit was ₹1,837 crore. Net interest income fell by more than 15% compared to the previous year, falling to ₹3,285 crore from ₹3,875.5 crore. The bank's operating profit stood at ₹3,523 crore, down from ₹3,006 crore a year ago. Gross NPAs stood at ₹6,242 crore, down from ₹6,385 crore a quarter ago. Net NPAs are at ₹474.2 crore, down from ₹447.4 crore in the previous quarter. Meanwhile, the gross NPA ratio declined from 2.93% to 2.65% on a quarter-on-quarter basis. Net NPAs remained flat at 0.21% on a quarter-on-quarter basis. Furthermore, the net interest margin increased from 3.68% to 3.71% on a quarter-on-quarter basis. 

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