IDBI Bank Q2 Results: IDBI Bank’s net profit has almost doubled in the September quarter. The bank said on Saturday, October 18 that its net profit in the July-September quarter of the current financial year increased by 98 percent to Rs 3,627 crore, which was Rs 1,836 crore in the same quarter a year ago.
A major part of this gain, about Rs 1,699 crore, came from the IPO of National Securities Depository Limited (NSDL). In NSDL’s IPO, IDBI Bank sold 11.11 percent stake in the company.
Without this one-time gain, IDBI Bank’s net profit stood at Rs 1,928 crore, up 5 per cent year-on-year. There was a decline in profit on quarterly basis because in the previous June quarter the bank had registered a net profit of Rs 2,007 crore.
The bank’s net interest income (NII) declined by 15.2 per cent to Rs 3,285 crore during the September quarter as against Rs 3,875 crore in the same quarter last year.
IDBI Bank’s margins declined year-on-year during the September quarter. This marked the fourth consecutive quarter when the bank’s margins declined on a year-on-year basis. At the same time, the cost of funds of the bank has decreased by 5 basis points to 4.82 percent in the September quarter. However, its deposit cost saw an increase of 4 basis points during the same period.
status of shares
Shares of IDBI Bank closed 0.53 per cent higher at Rs 91.82 on NSE on Friday. Since the beginning of this year, the bank’s shares have risen by about 20 percent.
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