IDBI Bank on Thursday reported a 75% year on year jump in its net profit to Rs 567 crore for the quarter ended September, driven by a reduction in employee costs and an improvement in net interest income (NII).
The bank’s NII or the difference between interest earned and interest expanded rose 9.45% year on year to Rs 1,854 crore. P Sitaram chief financial officer IDBI Bank, explained that the improvement in the bottom line was aided by certain accounting benefits.
The private lender’s pre-provisioning operating profit rose 15% year on year to Rs 1209 crore. The net interest margin (NIM) a key measure of profitability stood at 3.02% down 104 basis points sequentially.
The lender’s provisions rose 11.6% year on year to Rs 434 crore in Q2FY22. Asset- quality performance was a mixed bag as the gross non- performing asset (NPA) ratio improved to 20.92% in Q2FY22 from 21.48% in the previous quarter.