Results - Analysis
Loan growth at 14%, strong asset quality
IDBI Bank has reported 26% growth in net profit at Rs 2051.18 crore for the quarter ended March 2025 (Q4FY2025). The bank has posted 11% decline in net interest income (NII), while the core fee income of the bank improved 11% in Q4FY2025. The Net Interest Margin (NIM) of the bank dipped to 4.00% in Q4FY2025 compared to 4.91% in the corresponding quarter of previous year. On business front, the bank as has posted 13% growth in business with strong 14% surge in loan book. The asset quality of the bank has improved in Q4FY2025. Bank has raised the credit to deposit ratio to 72.4% at end March 2025 from 70.9% at end March 2024. However, the CASA ratio of the bank has declined to 46.6% at end March 2025 from 50.4% at end March 2024.
Asset quality improves: The bank has exhibited an healthy improvement in the asset quality in Q4FY2025.
The fresh slippages of loans stood at Rs 346 crore in Q4FY2025 compared with 524 crore in previous quarter and Rs 1852 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 322 crore, upgradations at Rs 302 crore and the write-off of loans was at Rs 662 crore in Q4FY2025. Provision coverage ratio was robust at 99.48% at end March 2025 compared to 99.47% a quarter ago and 99.09% a year ago. The capital adequacy ratio of the bank stood at 25.1% with Tier I ratio at 23.5% at end March 2025. The risk weighted assets of the bank has increased 10% YoY to Rs 193485 crore end March 2025,| Asset Quality Indicators: IDBI Bank | |||||||
| ' | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Mar-24 | Variation | |
| QoQ | YoY | ||||||
| Gross NPA (Rs Crore) | 6695.15 | 7634.75 | 7653.13 | 7795.42 | 8916.84 | -12 | -25 |
| Net NPA (Rs Crore) | 337.34 | 365.46 | 401.60 | 453.57 | 643.83 | -8 | -48 |
| % Gross NPA | 2.98 | 3.57 | 3.68 | 3.87 | 4.53 | -59 | -155 |
| % Net NPA | 0.15 | 0.18 | 0.20 | 0.23 | 0.34 | -3 | -19 |
| % PCR | 99.48 | 99.47 | 99.42 | 99.34 | 99.09 | 1 | 39 |
| % CRAR - Basel III | 25.05 | 21.98 | 21.98 | 22.42 | 22.26 | 307 | 279 |
| % CRAR - Tier I - Basel III | 23.51 | 19.91 | 19.89 | 20.26 | 20.11 | 360 | 340 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||
Business Highlights:
Healthy business growth: The business of the bank has increased 13% YoY to Rs 535051 crore end March 2025, driven by 14% surge in advances to Rs 224757 crore. Deposits rose 12% to Rs 310294 crore at end March 2025.
CASA deposits ratio declines yoy, improves qoq: The CASA deposits of the bank increased 3% YoY to Rs 144480 crore at end March 2025. The current account deposits increased 27% to Rs 62108 crore, while saving account deposits declined 9% to Rs 82372 crore end March 2025. The CASA ratio declined to 46.6% at end March 2025 compared to 50.4% at end March 2024, while rose slightly from 46.3% a quarter ago. The term deposits have increased 20% to Rs 165814 crore end March 2025.
Strong loan growth: Advances growth was driven by retail loans rising 13% YoY to Rs 127145 crore at end March 2025, while credit to agriculture increased 4% to Rs 12230 crore and MSME 21% to Rs 17652 crore at end March 2025. The corporate credit has moved up 17% to Rs 67730 crore end March 2025.
Investment book of the bank increased 2% YoY to Rs 117467 crore at end March 2025. The SLR book moved up 1% to Rs 86780 crore, while non SLR book increased 6% to Rs 35398 crore at end March 2025. The AFS book dipped 28% to Rs 25104 crore, while HTM book rose 6% to Rs 79663 crore at end March 2025. The duration of the overall investment portfolio stood at 3.81 years end March 2025 compared with 3.95 years at end March 2024.
Margins dip: The bank has showed 35 bps YoY jump in cost of deposits to 4.83%, while yield on advances dipped 153 bps YoY to 9.29% in Q4FY2025. Thus, the NIM has declined 91 bps YoY to 4.00%.
Book value of the bank stood at Rs 48.7 per share at end March 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 48.3 per share at end March 2025.
Quarterly Performance
NII dip as NIM declines: Bank has recorded flat interest income at Rs 6978.64 crore, while interest expenses increased 12% to Rs 3688.71 crore in Q4FY2025. NII dipped 11% to Rs 3289.93 crore in the quarter ended March 2025.
Healthy growth in the core fee income: Bank has posted strong 11% growth in core fee income to Rs 593 crore, while the recoveries jumped 828% to Rs 1095 crore and forex income 128% to Rs 198 crore. Further, the treasury income rose 1% to Rs 141 crore and other income jumped 47% to Rs 25 crore, leading to 129% surge in the overall non-interest income to Rs 2056.65 crore in the quarter ended March 2025.
Expenses ratio improves: The operating expenses of the bank declined 11% to Rs 2151.77 crore, as other expenses moved up 6% to Rs 1166.98 crore, while employee expenses declined 25% to Rs 984.79 crore in Q4FY2025. Cost to income ratio improved to 40.2% in Q4FY2025 compared with 52.6% in Q4FY2024, helping the Operating Profit to increase 47% to Rs 3194.81 crore.
Provisions and contingencies jump: The bank has showed 105% surge in provisions to Rs 233.06 crore. The bank has written off loan loss provisions of Rs 1673 crore and other provisions of Rs 119 crore, while investment provisions zoomed to Rs 1361 crore and standard asset provisions rebounded to Rs 664 crore in Q4FY2025.
Effective tax rate increased to 30.7% in Q4FY2025 from 21.0% in Q4FY2024. Net Profit rose by 26% YoY to Rs 2051.18 crore during quarter ended March 2025.
Financial Performance FY2025:
Bank has posted 33% increase in net profit to Rs 7515.17 crore in the year ended March 2025 (FY2025). The net interest income increased 3% to Rs 14626.46 crore, while non-interest income moved up 36% to Rs 4923.99 crore, pushing up net total income by 10% to Rs 19550.45 crore in FY2025. The operating expenses increased 3% to Rs 8471.85 crore, while provision and contingencies dipped 63% to Rs 510.39 crore, allowing profit before tax to increase 29% to Rs 10568.21 crore in FY2025. The cost-to-income ratio improved to 43.3% in FY2025 compared to 46.1% in FY2024. An effective tax rate declined to 28.9% in FY2025 compared to 31.3% in FY2024. The net profit has increased 33% to Rs 7515.17 crore in FY2025.| IDBI Bank: Results | ||||||
| Particulars | 2503 (3) | 2403 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 6978.64 | 6990.47 | 0 | 28902.03 | 26426.13 | 9 |
| Interest Expended | 3688.71 | 3302.58 | 12 | 14275.57 | 12239.69 | 17 |
| Net Interest Income | 3289.93 | 3687.89 | -11 | 14626.46 | 14186.44 | 3 |
| Other Income | 2056.65 | 896.17 | 129 | 4923.99 | 3610.91 | 36 |
| Net Total Income | 5346.58 | 4584.06 | 17 | 19550.45 | 17797.35 | 10 |
| Operating Expenses | 2151.77 | 2408.95 | -11 | 8471.85 | 8205.29 | 3 |
| Operating Profits | 3194.81 | 2175.11 | 47 | 11078.60 | 9592.06 | 15 |
| Provisions & Contingencies | 233.06 | 113.82 | 105 | 510.39 | 1396.64 | -63 |
| Profit Before Tax | 2961.75 | 2061.29 | 44 | 10568.21 | 8195.42 | 29 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 2961.75 | 2061.29 | 44 | 10568.21 | 8195.42 | 29 |
| Provision for tax | 910.57 | 432.83 | 110 | 3053.04 | 2561.33 | 19 |
| PAT | 2051.18 | 1628.46 | 26 | 7515.17 | 5634.09 | 33 |
| EPS*(Rs) | 7.6 | 6.1 | 7.0 | 5.2 | ||
| Adj BV (Rs) | 48.3 | 38.3 | 48.3 | 38.3 | ||
| * Annualized on current equity of Rs 10752.4 crore. Face Value: Rs 10, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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