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IDBI Bank Net Profit at₹ 378 crore with Net NPA at 1.94%, PCR at 97.08% and CRAR of 14.77%

IDBI Bank Net Profit at₹ 378 crore with Net NPA at 1.94%, PCR at 97.08% and CRAR of 14.77% 1

Highlights of Q3 FY 2021 (Quarter ending December 31, 2020) Financial Results

Major Highlights

  • Net profit of ₹ 378 crore  for Q3 FY 2021 against net loss of ₹5,763 crore  for Q3-FY 2020.
  • Profit Before Tax (PBT) of ₹ 843 crore for Q3 FY 2021 , YoY growth 12%.
  • Operating Profit for Q3 FY 2021 is ₹ 1,639 crore , YoY growth of 28%.
  • NII at ₹ 1,810 crore for Q3 FY 2021, YoY growth of 18%.
  • NIM at 2.87% for Q3 FY 2021,   YoY growth of 60 bps.
  • CASA ratio at 48.97%, YoY growth of 131 bps.
  • Net NPA at 1.94% as against 5.25% as on December 31, 2019.
  • CRAR at 14.77% as against 12.56% as on December 31, 2019.
  • PCR stood at 97.08% as against 92.41% as on December 31, 2019.

Operating Performance

  • Net Profit reported for Q3-2021 is ₹ 378 crore as against net loss of ₹ 5,763 crore for Q3-2020. Net Profit for Q3-2021 has improved by 17% against ₹ 324 crore reported for Q2-2021.
  • PBT improved by 12% for Q3-2021 to ₹ 843 crore as against ₹ 756 crore for Q3-2020. PBT for Q3-2021 has improved by 27% against ₹ 665 crore reported for Q2-2021.
  • Operating profit for Q3-2021 improved by 28% to ₹ 1,639 crore as against ₹ 1,278 crore for Q3-2020. Operating Profit for Q3-2021 has improved by 32% against ₹ 1246 crore reported for Q2-2021.
  • Net Interest Income (NII) for Q3-2021 improved by 18% to ₹ 1,810 crore as against ₹1,532 crore for Q3-2020. NII for Q3-2021 has improved by 7% against    ₹ 1,695 crore reported for Q2-2021.
  • Net Interest Margin (NIM) improved by 60 bps to 2.87% for Q3-2021 as compared to 2.27% for Q3-2020 and 2.70% for Q2-2021.
  • Cost of Deposit improved by 84 bps to 4.18% for Q3-2021 as compared to 5.02% for Q3-2020 and 4.41% for Q2-2021.
  • Cost of Funds improved by 99 bps to 4.39% for Q3-2021 as compared to 5.38% for Q3-2020 and 4.73% for Q2-2021.

Business Growth

  • CASA increased to ₹ 1,09,880 crore as on December 31, 2020 as against ₹ 1,03,966 crore as on December 31, 2019 and ₹ 1,08,217 crore as on September 30, 2020.
  • Share of CASA in Total Deposits improved to 48.97% as on December 31, 2020 as against 47.65% as on December 31, 2019 and 48.33% as on September 30, 2020.
  • The composition of Advances portfolio Corporate V/s Retail was realigned to 40:60 as on December 31, 2020 as against 45:55 as on December 31, 2019.

Asset Quality

  • Gross NPA ratio improved to 23.52% as on December 31, 2020 as against 28.72% as on December 31, 2019 and 25.08% as on September 30, 2020.
  • Net NPA ratio improved to 1.94% as on December 31, 2020 as against 5.25% as on December 31, 2019 and 2.67% as on September 30, 2020.
  • Provision Coverage Ratio (including Technical Write-Offs) improved to 97.08% as on December 31, 2020 from 92.41% as on December 31, 2019 and 95.96% as on September 30, 2020.

Capital Position

  • During the quarter ended December 2020, Bank has raised equity capital by way of QIP and issued 37,18,08,177  number of equity shares at a  ₹ 10/- each fully paid up with Share premium of ₹ 28.60 per share aggregating to ₹ 1435.18 crore.
  • Tier 1 improved to 12.22% as on December 31, 2020 as against 10.16% as on December 31, 2019 and 11.06% as on September 30, 2020.
  • CRAR improved to 14.77% as on December 31, 2020 as against 12.56% as on December 31, 2019 and 13.67% as on September 30, 2020.
  • Risk Weighted Assets (RWA) reduced by 3.71% to ₹ 1,59,078 crore as on December 31, 2020 as against ₹ 1,65,213 crore as on December 31, 2019. Credit Risk weighted assets reduced by 5% to ₹ 1,27,920 crore from ₹ 1,34510 crore as on December 31, 2019.

Other Developments

  • During the quarter ended December 2020, Bank has sold 23% stake out of 48% holding in its Joint venture IDBI Federal Life Insurance Company Ltd (now Ageas Federal Life Insurance Company Ltd). The post-sale holding in the Joint venture is 25% as on December 31, 2020.

COVID 19 Impact

  • In accordance with the RBI guidelines relating to COVID-19, the Bank has Cumulative COVID-19 related provision of ₹ 436 crore as at December 31, 2020. The provision made by the Bank is more than minimum required as per the RBI guidelines.
  • Bank has made provision of ₹ 70 crore during the quarter (₹ 270 crore as on September 30, 2020 has been continued), towards the provisioning requirement for cases to be restructured under the Resolution framework. The cumulative provision is ₹ 340 crore as at December 31, 2020.
  • Pursuant to Hon. Supreme Court’s interim order dated September 3, 2020, in the PIL case of Gajendra Sharma vs Union Bank of India & Anr, Bank has not classified any borrower account as NPA, which has not been classified as NPA as on August 31, 2020.
  • Pending disposal of the case, the bank, as a matter of prudence has, in respect of these accounts created additional cumulative provision of  ₹ 284.69 crore under Provision for Standard Assets and reversed overdue interest to the extent of ₹ 84 crore as at December 31, 2020.  
  • Pending Hon. Supreme Court’s final order, Proforma GNPA, NNPA and PCR stood at 24.33%, 2.75% and 95.90 % respectively as on December 31, 2020 considering the accounts, retained in standard category.
  • Mumbai, January 28, 2021: The Board of Directors of IDBI Bank Ltd. (IDBI Bank) met in Mumbai today and approved the financial results for the Quarter ended December 31, 2020.

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