IDBI Bank Q3: NII declines sharply, profit growth limited, asset quality improves

News Topical, Digital Desk : IDBI Bank, a BSE 200 company, has released its December quarter results. The bank's net income declined sharply, but profits increased, albeit limited. The bank's asset quality improved during the quarter, and net and gross NPAs improved quarter-on-quarter. The increase in profits amid the sharp decline in net income (NII) was primarily driven by an increase in other income, a decrease in tax expense, and a reduction in provisioning burden. The stock declined on Friday. According to the bank, its quarterly profit was ₹1,935.5 crore, compared to ₹1,908.3 crore in the same period last year, representing an increase of 1.4%. Net interest income (NII) declined 24% year-on-year to ₹3,209.5 crore, compared to ₹4,228.2 crore a year ago. On the asset quality front, net NPAs improved quarter-on-quarter to 0.18%, compared to 0.21% in the previous quarter. Gross NPAs also declined to 2.57%, compared to 2.65% in the previous quarter. Considering NPAs in value terms, net NPAs decreased to ₹425.3 crore, compared to ₹474.2 crore in the previous quarter. Meanwhile, gross NPAs increased to ₹6,281 crore, from ₹6,242 crore in the previous quarter. 

Why the profit was reported: The bank's other income declined from ₹749 crore to ₹1,209 crore compared to the previous year. Tax expenses declined from ₹728 crore to ₹523 crore. Furthermore, profit was supported by provision reversals/writebacks. 

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