IDBI Bank Limited – Financial Results for Q4 & FY 2023

IDBI Bank

IDBI Bank reports 64% rise in profits on YoY basis

Mumbai, April 29, 2023: The Board of Directors of IDBI Bank Ltd. (IDBI Bank) met in Mumbai today and approved the financial results for the Quarter ended March 31, 2023. Net Profit surges to all time high at ₹3,645 crore for the year and ₹1,133 crore for Q4 FY 23, YTD growth of 49% and QoQ growth of 22%.v The Board proposed dividend of ₹1 per share, after 8 years, subject to approval of the members at the ensuing Annual General Meeting.v Bank has opened 42 new branches during FY 2023 after 5 years.

Highlights for FY 2023

  Net profit at ₹3,645 crore, YoY growth of 49%.  

Operating Profit at ₹8,736 crore, YoY growth of 17%.

NIM at 4.52%, YoY growth 79 bps.

Cost of Deposit stood at 3.50%, YoY improvement of 6 bps.

 CRAR at 20.44%, YoY growth of 138 bps.

Return on Assets (ROA) at 1.20%, YoY growth of 36 bps.

 Return on Equity (ROE) at 16.15%, YoY growth of 255 bps.

 Cost to Income Ratio at 44.72%, YoY improvement of 117 bps.

 Net NPA at 0.92% as against 1.36% as on March 31, 2022.

Gross NPA at 6.38% as against 20.16% as on March 31, 2022.

PCR stood at 97.94% as against 97.62% on March 31, 2022.

IDBI Bank

Highlights for Q4 of FY 2023

 Net Profit improved by 64%for Q4-2023 to ₹1,133 crore as against net profit of ₹691 crore for Q4-2022.

 Operating profit improved by 60% for Q4-2023 to ₹2,425 crore as against ₹1,513 crore for Q4-2022.

 Net Interest Income improved by 35% for Q4-2023 to ₹3,280 crore as against ₹2,420 crore for Q4-2022.

  Net Interest Margin (NIM) improved to5.01% for Q4-2023 as compared to 3.97% for Q4-2022.

Cost of Deposit has increased by 28 bps to 3.71% for Q4-2023 as compared to 3.43% for Q4-2022.

 Cost of Funds has increasedby 27 bps to 3.96% for Q4-2023 as compared to 3.69% for Q4-2022.

Business Growth

CASA increased to ₹1,35,455 crore and CASA ratio stood at 53.02% as on March 31, 2023. As on March 31, 2022, Total CASA and CASA ratio stood at ₹1,32,359 and 56.77% respectively.

 Net advances grew by 19% YoY to ₹1,62,568 crore as on March 31, 2023 as against ₹1,36,955 as on March 31, 2022.

 The composition of corporate v/s retail in gross advances portfolio was at 31:69 as on March 31, 2023 as against 37:63 as on March 31, 2022.

Asset Quality

  Gross NPA ratio improved to 6.38% as on March 31, 2023 as against 20.16% as on March 31, 2022.

 Net NPA ratio improved to 0.92% as on March 31, 2023 as against 1.36% as on March 31, 2022.

 Provision Coverage Ratio (including Technical Write-Offs) improved to 97.94% as on March 31, 2023 from 97.62 % as on March 31, 2022.

Capital Position

 Tier 1 improved to 18.08% as on March 31, 2023 as against 16.68% as on March 31, 2022.

  CRAR improved to 20.44% (post proposed dividend) as on March 31, 2023 as against 19.06% as on March 31, 2022. Effect of proposed dividend has been reckoned in determining capital funds in the computation of capital adequacy ratios.

  Risk Weighted Assets (RWA) stood at ₹1,63,719 crore as on March 31, 2023 as against ₹1,54,559 crore as on March 31, 2022.

Significant developments

 The Bank has set off its accumulated losses of ₹45,396.18 crore as on April 01, 2021 by utilizing the balance outstanding to the credit of Securities Premium Account of the Bank on said date, after obtaining approval from its shareholders, Reserve Bank of India and National Company Law Tribunal.

 IDBI Bank was conferred as one of the Best BFSI Brands – 2023, at Economic Times Best BFSI Brands 2023 Conclave. The event recognized the Bank’s stellar contribution in providing outstanding digital customer experiences, minimizing cyber security threats, accelerating technology innovation and minimizing customer’s risk profile.

  IDBI Bank was awarded the Jury’s Choice Award for the category of ‘Innovative Initiative in Social Sector’ at the Elets BFSI Tech Innovation Awards 2023, for its CMS product – G-LMS (Government Liquidity Management Solution).

 IDBI Bank has launched e-Bank Guarantee (e-BG) facility in partnership with National e-Governance Services Ltd (NeSL) which addresses the last mile challenge of digitization of the paper based BG issuance process with e-stamping and e- signatures.

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