Mumbai, May 30, 2019 — The Board of Directors of IDBI Bank Ltd. met today to approve the audited financial results for the quarter and financial year ended March 31, 2019. FY 2019 marked a significant phase of transformation for the Bank, with strategic capital infusion, operational realignment, and improved performance metrics.
Key Highlights of FY 2019
Strategic Investment by LIC
Life Insurance Corporation of India (LIC) acquired a 51% controlling stake in IDBI Bank on January 21, 2019.
A capital infusion of ₹21,624 crore was received from LIC, strengthening the Bank's capital base.
Capital & Risk Metrics
CET 1 capital ratio improved to 8.91% (from 7.42% in FY18).
CRAR rose to 11.58% (from 10.41% in FY18).
Risk-Weighted Assets reduced by 17% YoY to ₹1.83 lakh crore.
Financial Performance
Operating Profit (excl. strategic sale): ₹1,405 crore in Q4 FY19 vs. ₹518 crore in Q4 FY18.
Operating Profit (incl. strategic sale): ₹4,052 crore for FY19 vs. ₹7,909 crore in FY18.
Net Interest Income (NII): up 76% YoY to ₹1,609 crore in Q4 FY19.
Net Interest Margin (NIM): rose to 2.26% in Q4 FY19 (vs. 1.19% in Q4 FY18).
Net Loss: ₹4,918 crore in Q4 FY19; ₹15,116 crore for FY19.
Cost-to-Income Ratio (excl. strategic sale): improved to 49.47% in Q4 FY19 (vs. 70.82% in Q4 FY18).
Business & Retail Focus
CASA deposits: up to ₹96,730 crore; CASA ratio improved to 42.54% (vs. 37.15%).
Retail-Wholesale loan mix realigned to 51:49 (from 45:55).
Structured Retail Assets portfolio: up 18% YoY to ₹54,034 crore.
Asset Quality
Gross NPA ratio: improved to 27.47% (from 27.95%).
Net NPA ratio: significantly improved to 10.11% (from 16.69%).
Provision Coverage Ratio (incl. technical write-offs): increased to 82.88% (from 63.40%).
Recovery from written-off accounts: up 113% YoY to ₹468 crore.
Total NPA recovery: ₹9,326 crore (incl. ₹2,883 crore in interest recovery).
Strategic Synergies & Future Outlook
LIC-IDBI Collaboration
Signed Service Level Agreement to offer LIC products through 1,800 IDBI branches.
Expected to generate fee income and float income from premium collections.
Bank designated as a preferred channel for LIC premium payments.
Operational Focus Areas
Expand retail business and CASA base to reduce cost of deposits.
Enhance NPA resolution and recovery mechanisms.
Improve HR policies with performance-based systems like i-PACE.
Strengthen risk management and credit processes.
LIC Synergy Opportunities
Cross-selling via Bancassurance and TPD channels.
Shared technology and joint branding initiatives.
Retail portfolio de-risking and diversified revenue generation.
Awards & Recognition
NSDL Star Performer (PSU Bank Category) for new account openings.
PFRDA "Leadership Capital" award for APY subscription excellence.
ABCI Awards for IDBI Bank’s Hindi magazine ‘Vikas Prabha’ (2 silver, 1 bronze).
IDBI Bank’s FY 2019 performance marks a turning point, with signs of operational resilience, capital strength, and long-term strategic direction supported by the synergy with LIC.