Shares of the state-run lender IDBI Bank rose as much as 5 per cent to hit an intraday high of Rs 37.10 on the BSE after it reported March quarter earnings. IDBI Bank's net profit more than tripled to Rs 512 crore compared with Rs 135.39 crore during the same period last year. Massive jump in IDBI Bank's profit came on account of negative provisions worth Rs 1,119.65 crore for non-performing assets and improvement in operating profit, majorly driven by increase in non-interest income, the bank said in an investor presentation. (Track IDBI Bank stock price here)
IDBI Bank's net interest income or the difference between interest earned and interest expended jumped 37.5 per cent to Rs 3,240 crore from Rs 2,356.27 crore during the same period last year. Net interest margin (NIM) for Q4 FY 21 at 5.14 per cent, improved by 134 basis points on annual basis.
Its bad loans or gross non-performing assets (NPA) as a percentage of total advances came in at 22.37 per cent compared with 23.52 per cent in the previous quarter.
Total gross NPAs came in at Rs 36,211.95 crore compared with Rs 37,559.39 crore in the same quarter last year.
Bank is now out of prompt corrective action (PCA) framework, will ensure compliance all PCA parameters on a continuous basis, IDBI Bank said.
As of 1:39 pm, IDBI Bank shares traded 2.41 per cent higher at Rs 36.15, outperforming the Sensex which was down 0.7 per cent.