Homeearnings News

IDBI Bank aims to achieve loan growth of 8-10% in FY22

earnings | IST

IDBI Bank aims to achieve loan growth of 8-10% in FY22


IDBI Bank posted a decent set of Q2 earnings. NPA provision write back aided profit after tax. Rakesh Sharma, MD & CEO of IDBI Bank spoke to CNBC-TV18 to discuss the numbers.

IDBI Bank on Thursday reported a 75 percent jump in its standalone profit after tax to Rs 567 crore in the second quarter ended September 30, on higher interest income. The LIC-owned bank had reported a standalone profit after tax of Rs 324 crore in the year-ago quarter.
Net interest margin (NIM) improved by 32 bps to 3.02 percent compared to 2.70 percent in the year-ago quarter. The lender also witnessed improvement in its asset quality, with the gross NPA ratio reducing to 20.92 percent from 25.08 percent.
On interest income Rakesh Sharma, MD & CEO of IDBI Bank said, “In Q1 we had recovered Rs 733 crore from Kingfisher and the major portion went towards interest and there were other recovery also so sequentially it is down. However, year-on-year if you see there has been growth in net interest income by 9 percent.”
On net interest margins (NIMs) Sharma said, “We had given the outlook that our NIM will be more than 3 percent for the financial year and our net interest margin for the current year has been 3.02 percent and we will be able to maintain NIM about 3 percent. Again the same reason because that special recovery was there from Kingfisher during Q1 so, that time NIM was high. But overall if you see again YoY, there has been improvement in NIM also. From 2.70 it has improved to 3.02 and we will be able to maintain this more than 3 percent net interest margin.”
On return on assets (RoA) he said, “At the beginning of the year we had indicated that we will be able to achieve ROA of 0.65 - 0.70 and we have already achieved it. For the current year it is 0.78 and the for the half-year it is 81 basis points. So my target is instead of 0.7 we will be targeting more than 0.8 and next year we will be targeting ROA of more than 1 percent. Gradually the banks' performance has been improving. Last year, the bank made a profit after a period of four years and continuously there has been an improvement. We are quite hopeful that in the coming years, the bank will be showing further improvement in all the efficiency parameters.”
For full management commentary, watch the video.
-With PTI inputs
next story

Market Movers