IDBI Bank Reduce Losses and Receive Capital Infusion from GOI

The Board of Directors of IDBI Bank Ltd. (IDBI) met in Mumbai today and approved the financial results for the quarter ended June 30, 2017.

Highlights of Q1 FY 18 (June 30, 2017) financial results

- Losses reduced by 73.34% from Rs. 3200 crore for QE March 17 to Rs. 853 crore for QE June 17.
- Provision for NPA reduced from Rs. 5333 crore for QE March 17 to Rs. 1069 crore for QE June 17.
- CRAR increased from 10.70% to 10.92%, CET1 improved from 5.64% to 5.71% from QE March 17 to QE June 17. Further capital infusion by GOI of Rs. 1861 crore on August 9, 2017 resulted in the improvement of CRAR to 11.69% and CET 1 to 6.49%.
- Recovery and Upgradation improved from Rs. 1789 crore during the QE March 2017 to Rs. 2118 crore during the QE June 2017. Fresh slippages is reduced to Rs. 7659 crore during Q1 FY 2018 compared to Rs. 11531 crore during Q4 FY 2017. Gross NPAs stood at 24.11% and Net NPA at 15.80% as on June 30, 2017.

- CASA increased by 25.93% to Rs. 81,837 crore as on June 2017 from Rs. 64,985 crore as on June 2016 and CASA is 33.67% of Aggregate Deposits as on June 2017 as against 25.58% of Aggregate Deposits as on June 2016.

- Bulk Term Deposits including Certificate of Deposits has been lowered by 28.19% from Rs. 1,10,049 crore as on June 2016 to Rs. 79,025 crore as on June 2017.

- Interest expenditure reduced from Rs. 5353 crore for QE March 17 to Rs. 4609 crore for QE June 17. Cost of Funds has been reduced by 92 basis points from 6.91% as on June 2016 to 5.99% as on June 2017.  

- Interest on Deposits has come down from Rs. 4,268 crore in Q4 FY 2017 to Rs. 3,582 crore in Q1 FY 2018 mainly on account of reduction of Bulk Deposits.

- Operating profit stood at Rs. 877 crore for the QE June 2017 against Rs. 1390 crore for the quarter ending March 31, 2017.

Significant developments during April to June 2017

- IDBI Bank has been rated 'High' as per the Banking Codes & Standards Board of India (BCSBI) Code Compliance Rating 2017. IDBI Bank is the only PSB to be rated 'High' by BCSBI and overall rank is 7 out of 51 member banks.  

- IDBI Bank won 2nd prize at the National Awards to Banks by Ministry of MSME for "Excellence in Lending to Micro Enterprises" for year 2015-16. The Bank was also awarded by CIMSME (Chamber of Indian Micro Small and Medium Enterprises) for "Best Bank for Promotional Schemes"- Runner Up in Mid-Sized Category.

- IDBI Bank reduced its Marginal Cost of Funds based Lending Rates (MCLR), by 15 bps to 25 bps, for various maturity buckets, w.e.f. May 7, 2017.

- During the quarter, Life Insurance Corporation of India (LIC) has infused Rs. 394 crore by way of preferential allotment of equity shares.

- The Bank is implementing a comprehensive turnaround plan in respect of asset quality, Cost reduction, improving income and proper mix of retail and corporate.

Shares of IDBI BANK LTD. was last trading in BSE at Rs.52.3 as compared to the previous close of Rs. 52.6. The total number of shares traded during the day was 1213507 in over 3899 trades.

The stock hit an intraday high of Rs. 53 and intraday low of 50.25. The net turnover during the day was Rs. 62885010.

Source : Equity Bulls

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