IDBI Bank Reports Significant Profit Growth

In a remarkable financial turnaround, IDBI Bank announced a 31% increase in its net profit for the December 2024 quarter, reaching an impressive Rs 1,908 crore. This growth is attributed to the bank's reduced provisioning and a significant boost in interest income.

Improved Asset Quality and Income

The bank's total income for the quarter rose to Rs 8,565 crore, up from Rs 7,514 crore in the same period last year. A notable improvement was seen in the interest income, which climbed to Rs 7,816 crore from Rs 6,541 crore. Furthermore, the net interest income (NII) increased to Rs 4,228 crore in Q3 FY25, compared to Rs 3,435 crore in Q3 FY24.

Asset Quality on the Rise

Asset quality showed a significant improvement, with the gross non-performing asset (NPA) ratio dropping to 3.57% from 4.69% a year earlier. The net NPA ratio also saw a decline, falling to 0.18% from 0.34% at the end of December 2023.

Future Plans and Government Stake

The government, holding over 45% of IDBI Bank, plans to divest its stake, with the process expected to accelerate in the next fiscal year. Meanwhile, LIC, which holds a 49.24% stake in the bank, is reportedly keen on retaining a strategic shareholding to benefit from the bancassurance channel.