IDBI Bank on Monday reported a 35% increase in net profit for the quarter ended March 2022, to Rs 691 crore, thanks to lower bad loan provisions as nonperforming assets (NPAs) decreased.
In the same quarter of 2020-21, the bank made a net profit of 512 crores.
In a regulatory statement, IDBI Bank claimed its total income for the January-March quarter of 2021-22 was 5,444.08 crore, down from 6,894.86 crores the previous year.
The bank’s core interest income for the period was 4,599.67 crore, down from 5,781.48 crores the previous year. Other sources of income were also down, falling to 844 crores from 1,113 crores.
The bank’s gross problematic loans, or NPAs, declined to 19.14 percent of total loans at the end of March 2022, down from 22.37 percent in March 2021.
Gross non performing assets (NPAs) totaled 34,115 crore, compared to 36,212 crore in value. Similarly, net non performing assets (NPAs) fell from 1.97 percent to 1.27 percent (Rs 1,856 crore) (Rs 2,519 crore).
As a result, bad loan and contingency provisions for the quarter were reduced to 669.23 crores, down from 2,393.36 crores set aside by the bank for the March quarter of 2020-21. Provisions for bad loans totaled 300.61 crores, compared to 1,119.65 crore.
The bank’s net profit for the full year increased by 79% to 2,439 crores from 1,359 crores in 2020-21. Total income fell to 22,985 crores from 24,497 crores during the year, owing to a decrease in interest income as well as income from other sources.
By March 31, 2022, the bank’s gross advances had increased by 10.07 percent year over year to 1,78,207 crore.
IDBI Bank said it got interested of Rs 1,313 crore on income tax refunds in the March quarter of the previous fiscal year.