IDBI Bank Reports Profit for Second Consecutive Quarter

IDBI Bank Reports Profit for Second Consecutive Quarter, Clocks Net Profit of ₹ 144 crore

Highlights of Q1 FY 2021 (Quarter ending June 30, 2020) Financial Results

Major Highlights

Ø  Bank reports PAT of ₹ 144 crore  for Q1 FY 2021 against loss ₹ 3,801 crore  for
Q1-FY 2020

Ø  Bank registers Profit Before Tax (PBT) of ₹ 438 crore for Q1 FY 2021 against Loss Before Tax of ₹ 5,381 crore for Q1 FY 2020

Ø  Operating Profit for Q1 FY 2021 is ₹ 1,326 crore , YoY growth of 39%

Ø  NII at ₹ 1,773 crore for Q1 FY 2021, YoY growth of 22%

Ø  NIM at 2.81% for Q1 FY 2021, YoY growth of 68 bps

Ø  CASA ratio at 47.55%, YoY growth of 440 bps

Ø  Net NPA at 3.55%. CRAR at 13.37%

Ø  PCR at 94.71%, is the highest in the Banking Industry

Profitability

·        Net Profit reported for Q1-2021 is ₹ 144 crore as against loss of ₹ 3,801 crore for Q1-2020. Net Profit for Q1-2021 has improved by 7% against ₹ 135 crore reported for Q4-2020

·        Profit Before Tax (PBT) improved for Q1-2021 to ₹ 438 crore as against loss of           ₹ 5,381 crore for Q1-2020. PBT for Q1-2021 has improved by 51% against ₹ 290 crore reported for Q4-2020

·        Operating profit for Q1-2021 improved by 39% to ₹ 1,326 crore as against ₹ 951 crore for Q1-2020

·        Net Interest Income (NII) for Q1-2021 improved by 22% to ₹ 1,773 crore as against ₹1,458 crore for Q1-2020

·        Net Interest Margin (NIM) improved by 68 bps to 2.81% for Q1-2021 as compared to 2.13% for Q1-2020

·        Cost of Deposit improved by 64 bps to 4.65% for Q1-2021 as compared to 5.29% for Q1-2020 and improvement of 17 bps as compared to 4.82% for Q4-2020

·        Cost of Funds improved by 67 bps to 4.96% for Q1-2021 as compared to 5.63% for Q1-2020 and improvement of 23 bps as compared to 5.19% for Q4-2020

·        Non-Interest Income to Total Income improved to 17.01% for Q1-2021 as compared to 14.06% for Q1-2020

·        Cost to Net Income Ratio has improved to 52.25% in Q1-2021 from 58.48% in Q1-2020.

Business

·        CASA increased to ₹ 1,04,315 crore as on June 30, 2020 as against ₹ 99,590 crore as on June 30, 2019

·        Share of CASA in Total Deposits improved to 47.55% as on June 30, 2020 as against 43.15% as on June 30, 2019

·        The composition of Advances portfolio Corporate V/s Retail was realigned to 43:57 as on June 30, 2020 as against 48:52 as on June 30, 2019

·        Structured Retail Assets portfolio increased by ₹ 3,696 crore (7%) to ₹ 58,633 crore as on June 30, 2020 from ₹ 54,938 crore as on June 30, 2019

Asset Quality

·        Gross NPA ratio improved to 26.81% as on June 30, 2020 as against 29.12% as on June 30, 2019 and 27.53% as on March 31, 2020

·        Net NPA ratio improved to 3.55% as on June 30, 2020 as against 8.02% as on June 30, 2019 and 4.19% as on March 31, 2020

·        Provision Coverage Ratio (including Technical Write-Offs) improved to 94.71% as on June 30, 2020 from 87.79% as on June 30, 2019 and 93.74% as on March 31, 2020

·        First Time NPAs reduced to ₹ 69 crore in Q1-2021 from ₹ 3,486 crore in        Q1-2020. FTNPA for Q4-2020 stood at ₹ 727 crore

Capital

·        Tier 1 improved to 10.59% as on June 30, 2020 as against 6.14% as on June 30, 2019

·        CRAR improved to 13.37% as on June 30, 2020 as against 8.14% as on June 30, 2019

·        Risk Weighted Assets (RWA) reduced by 5.70% to ₹ 1,60,994 crore as on June 30, 2020 as against ₹ 1,70,734 crore as on June 30, 2019

COVID 19 Impact

·        The Bank continues to hold provisions against impact of COVID 19. During quarter ended June 2020, the Bank has made further COVID 19 related provisions of  ₹ 189 crore (Cumulative provision of ₹ 436 crore). The provision made by the Bank is more than minimum required as per the RBI guidelines.

IDBI-LIC Major achievements during Q1 FY 2021

·        LIC renewal Premium Collection through- Cash & Cheque increased during COVID-19. ~95% Branch activation & 1.15 lakh Transactions during Q1FY21.

·        MOU for Tie-up with LIC- Card Services Limited for launching co-branded credit cards executed.

·        New Insurance products on boarded on online BANCA platform ~85 % Branch activation & 7192 NOPs sourced with ₹ 95 crore premium during Q1 FY2021 with YOY Growth of 22%.

·        Agreement executed for appointment of LICHFL - Financial Service Limited (LICHFL-FSL) as corporate DSA for sourcing of NSRA (MSME & Agriculture) and select SRA loans (Auto, Personal & Education Loan).

Significant Developments during Q1 2021

·        The Bank launched FASTag for retail customers to enable automatic and cashless toll payments using RFID tag pasted on their vehicles.

·        The Bank received the Client Innovation Award from Infosys for Dynamic Virtual Account Product which facilitates electronic collection of proceeds with API Integration for Corporate and Institutional Clients.

·        The Bank received NPCI Certification for Electronic Toll Collection at Toll Plazas of IDBI Bank assisted and other Concessionaires.

·        The Bank has received citation for three awards in different categories from Association of Business Communicators of India (ABCI) for IDBI Bank’s quarterly Hindi Magazine ‘Vikas Prabha’.

·    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, 2020.