The Board of Directors of IDBI Bank Ltd. (IDBI Bank) met in Mumbai today and approved the financial results for the Quarter and Year ended March 31, 2020.
Highlights of Financial Result for the Quarter and Year ended FY 2020
- Bank reports PAT of Rs. 135 crore for Q4 FY 2020, after reporting Net Loss for last 13 quarters
- Operating Profit for Q4 FY 2020 (Rs. 1,874 crore ), YoY growth of 34% and QoQ growth of 47%
- NII at Rs. 2,356 crore for Q4 FY 2020, YoY growth of 46% and QoQ growth of 54%.
- NIM at 3.80% for Q4 FY 2020, YoY growth of 154 bps and QoQ growth of 153 bps.
- CASA ratio at 47.74%, YoY growth of 520 bps and QoQ growth of 9 bps.
- Bank has achieved all PCA parameters for Q4 FY 2020 and except RoA for full year. Net NPA at 4.19%. CRAR at 13.31%
- PCR at 93.74%, is the highest in the Banking Industry
- Net Profit reported for Q4-2020 is Rs. 135 crore as against loss of Rs. 4,918 crore for Q4-2019. (Net loss reported for FY 2020 stood at Rs. 12,887 crore against Rs. 15,116 crore in FY 2019).
- Operating profit for Q4-2020 improved by 34% to Rs. 1,874 crore as against Rs. 1,396 crore for Q4-2019. Operating Profit for FY 2020 was Rs. 5,112 crore against Rs. 4,052 crore in FY 2019.
- Net Interest Income (NII) for Q4-2020 improved by 46% to Rs. 2,356 crore as against Rs. 1,609 crore for Q4-2019. NII for FY 2020 was Rs. 6,978 crore as against Rs. 5906 crore in FY 2019.
- Net Interest Margin (NIM) improved by 154 bps to 3.80% for Q4-2020 as compared to 2.26% for Q4-2019. NIM for FY 2020 improved to 2.61% as against 2.03% in FY 2019.
- Cost of Deposit improved by 58 bps to 4.82% for Q4-2020 as compared to 5.40% for Q4-2019. Cost of deposit for FY 2020 improved to 5.08% as against 5.44% in FY 2019.
- Share of CASA in Total Deposits improved to 47.74% as on March 31, 2020 as against 42.54% as on March 31, 2019.
- The composition of Advances portfolio Corporate V/s Retail was realigned to 44:56 as on March 31, 2020 as against 49:51 as on March 31, 2019.
- Structured Retail Assets portfolio increased by Rs. 5,104 crore (9%) to Rs. 59,138 crore as on March 31, 2020 from Rs. 54,034 crore as on March 31, 2019.
- Gross NPA ratio stood at 27.53% as on March 31, 2020 as against 27.47% as on March 31, 2019 and 28.72% as on December 31, 2019.
- Net NPA ratio improved to 4.19% as on March 31, 2020 as against 10.11% as on March 31, 2019 and 5.25% as on December 31, 2019.
- Provision Coverage Ratio (including Technical Write-Offs) improved to 93.74% as on March 31, 2020 from 82.88% as on March 31, 2019 and 92.41% as on December 31, 2019.
- First Time NPAs reduced to Rs. 727 crore in Q4-2020 from Rs. 1,781 crore in Q4-2019. FTNPA for the year has reduced to Rs. 8,384 crore as against Rs. 15,281 crore in FY 2019.
- Bank has achieved all PCA parameters for exit, except ROA.
- Tier 1 capital and CRAR has improved and stood at 10.57% and 13.31% respectively as on March 31, 2020 as against 9.14% and 11.58% as on March 31, 2019.
- Risk Weighted Assets (RWA) reduced by 13.47% to Rs. 1,58,746 crore as on March 31, 2020 as against Rs. 1,83,457 crore as on March 31, 2019.
COVID 19 Impact
- 99% branches were open and functioning as on March 31, 2020 ensuring the directions and guidelines issued by the local authorities.
- As on March 31, 2020, the Bank has made COVID 19 related provisions of Rs. 247 crore in Q4-2020 against standard assets.
IDBI-LIC Synergies during FY 2020
- Insurance Premium Collection crossed Rs. 800 crore netting to a fee income of Rs. 40 crore in FY 2020.
- LIC Premium Pay launched - This will facilitate LIC renewal premium collection through Branch Channel from policyholders in Cash and Cheques and Merchant Invoices (in Cash). 63000+ transaction executed in FY 2020.
Significant Developments during Q4 2020
- IDBI Bank seamlessly completed the migration of the Bank's Core Banking System (CBS) from Finacle 7x to Finacle 10x.
- IDBI Bank setup its Centralized Trade Processing Centre (CTPC) at Nariman Point, Mumbai. The CTPC will enable the Bank to mitigate operational risks effectively while facilitating higher degree of efficiency in product delivery, minimizing TAT and improving customer service.
- IDBI Bank raised capital funds of Rs. 745 Crore through issue of Basel III compliant Tier2 Bonds. The amount mobilized would be counted as part of Tier 2 capital and enhance the capital adequacy of the Bank. The bonds are rated A+ with Stable outlook by CRISIL and CARE Rating.
Shares of IDBI BANK LTD. was last trading in BSE at Rs.20.3 as compared to the previous close of Rs. 20.05. The total number of shares traded during the day was 637630 in over 1164 trades.
The stock hit an intraday high of Rs. 20.8 and intraday low of 19.75. The net turnover during the day was Rs. 12974913.