IDBI Q1FY22 Financial Results - Net Profit surges four times to ₹603 crore; Operating profit doubles to ₹2,776 crore

Press Release

• 29-07-2021

Mumbai: The Board of Directors of IDBI Bank Ltd. (IDBI Bank) met in Mumbai today and approved the financial results for the quarter ended June 30, 2021.

Major Highlights of Q1 FY 2022

Net profit of ₹603 crore for Q1 FY 2022 against net profit of ₹144 crore for Q1 FY 2021, YoY growth 318%.

Profit Before Tax (PBT) of ₹ 1024 crore for Q1 FY 2022 , YoY growth 134%.

Operating Profit for Q1 FY 2022 is ₹2,776 crore , YoY growth of 109%.

NII at ₹2,506 crore for Q1 FY 2022, YoY growth of 41%.

NIM at 4.06% for Q1 FY 2022, YoY growth of 125 bps.

Return on Assets (ROA) stands at 0.83% for Q1 FY 2022, YoY growth by 63 bps.

Return on Equity (ROE) stands at 14.44% for Q1 FY 2022, YoY growth by 962 bps.

CASA ratio at 52.44%, YoY growth of 489 bps.

Net NPA at 1.67% as against 3.55% as on June 30, 2020.

CRAR at 16.23% as against 13.37% as on June 30, 2020.

PCR stood at 97.42% as against 94.71% as on June 30, 2020.

Operating Performance

§  Net Profit reported for Q1-2022 is ₹603 crore as against net profit of ₹144 crore for Q1-2021. Net Profit for Q1-2022 has improved by 18% against ₹512 crore reported for Q4-2021.

§  PBT improved by 134% for Q1-2022 to ₹1,024 crore as against ₹438 crore for Q1-2021. PBT for Q1-2022 has improved by 142% against ₹423 crore reported for Q4-2021.

§  Operating profit improved by 109% for Q1-2022 to ₹2776 crore as against ₹1,326 crore for Q1-2021. Operating Profit stood at ₹2,879 crore for Q4-2021.

§  Net Interest Income (NII) improved by 41% for Q1-2022 to ₹2,506 crore as against ₹1,772 crore for Q1-2021. NII stood at ₹ 3,240 crore for Q4-2021.

§  Net Interest Margin (NIM) improved by 125 bps to 4.06% for Q1-2022 as compared to 2.81% for Q1-2021. NIM stood at 5.14% (excluding interest on income tax refund - 3.06%) for Q4-2021.

§  Cost of Deposit improved by 93 bps to 3.72% for Q1-2022 as compared to 4.65% for Q1-2021 and 3.91% for Q4-2021.

§  Cost of Funds improved by 98 bps to 3.98% for Q1-2022 as compared to 4.96% for Q1-2021 and 4.16% for Q4-2021.

Business Growth

§  CASA increased to ₹1,16,609 crore as on June 30, 2021 as against ₹1,04,315 crore as on June 30, 2020 and ₹1,16,491 crore as on March 31, 2021 (YoY growth of 12%).

§  Share of CASA in Total Deposits improved to 52.44% as on June 30, 2021 as against 47.55% as on June 30, 2020 and 50.45% as on March 31, 2021.

§  The composition of Advances portfolio Corporate V/s Retail was realigned to 38:62 as on June 30, 2021 as against 43:57 as on June 30, 2020.

Asset Quality

§  Gross NPA ratio improved to 22.71% as on June 30, 2021 as against 26.81% as on June 30, 2020. Gross NPA stood at 22.37% as on March 31, 2021.

§  Net NPA ratio improved to 1.67% as on June 30, 2021 as against 3.55% as on June 30, 2020 and 1.97% as on March 31, 2021.

§  Provision Coverage Ratio (including Technical Write-Offs) improved to 97.42% as on June 30, 2021 from 94.71% as on June 30, 2020 and 96.90% as on March 31, 2021.

§  Recovery from technically write off accounts improved to ₹331 crore in Q1-2022 as against ₹117 crore in Q1-2021 and ₹269 crore in Q4-2021.

Capital Position

§  Tier 1 improved to 13.64% as on June 30, 2021 as against 10.59% as on June 30, 2020 and 13.06% as on March 31, 2021.

§  CRAR improved to 16.23% as on June 30, 2021 as against 13.37% as on June 30, 2020 and 15.59% as on March 31, 2021.

§  Risk Weighted Assets (RWA) reduced by 4% to ₹1,54,285 crore as on June 30, 2021 as against ₹1,60,994 crore as on June 30, 2020. Credit Risk weighted assets reduced by 5% to ₹1,22,876 crore from ₹ 1,29,953 crore as on June 30, 2020.

COVID 19 Impact

§  As on June 30, 2021, the Bank had COVID-19 related provisions of ₹863 crore (other than provisions held for restructuring under COVID-19 norms). The provision made by the Bank is more than minimum required as per the RBI guidelines.

IDBI – LIC Synergies for FY 2021

§  Bank is progressing on realizing business synergies with LIC.  For Q1-2022, Bank has done a premium collection of ₹32 crore for LIC and earned a fee income of ₹5 crore. Apart from the above, Bank is providing cash management services, savings and current accounts to LIC and its employees and asset products. 

§  The Bank launched a contactless prepaid Gift Card – ‘Shagun’ in collaboration with LIC Cards Services Limited (LIC CSL) on RuPay platform. The Shagun card, in the initial phase, will be available to LIC and its subsidiaries/associates for official use. The card will be used to facilitate awards and special rewards during official conferences/ functions. The purpose of this card is to expand the Gift Card market with an intent to promote cashless ways of gifting and present a wide range of end-use choices and in future foray into the market of e-Gift Cards.

Significant Developments for the quarter ended June 30, 2021

§  The Bank launched its fully digitized end to end Loan Processing System (LPS) for its MSME and Agri. products. This new loan processing system seamlessly integrates with data fintechs, bureau validations, document storage/retrieval, account opening/management, customer notifications & portfolio management capabilities along with embodied policy/knock off parameters. These features of the fully digitized and automated loan processing system are further aimed at providing a superior tech-enabled banking experience to bank’s MSME & Agri. customers.

§  The Bank launched Soft Token, an in-app based authentication method for transactions on the Bank’s “GO Mobile+” Mobile Banking application. Using this feature, customers can now authenticate transactions without relying on SMS based OTP.

§  IDBI Bank NETC FASTag based toll collection facility(Acquirer) was made live on Yamuna Expressway having a length of 165 kms, linking Greater Noida, Jewar, Mathura & Agra.

§  The Bank has tied up with e-Kharid Crop Procurement Project of Haryana Govt. for Procurement of wheat during Rabi-Marketing session through e-Kharid Portal, to facilitate DBT through CMS NACH.

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