IDBI Bank glitters overshadowing the NPA mess

IDBI Bank has declared its Q1FY17 results on Thursday. The bank’s interest earned has risen by 5.41 per cent to Rs 7303 crore in Q1FY17 as compared to previous quarter. However, its operating profit has declined by 8.06 per cent to Rs 6753 crore in Q1FY17 on a sequential basis. IDBI Bank has posted a net profit of Rs 241 crore in Q1FY17 against a net loss of Rs 1736 crore in Q4FY16.

On yearly comparison, IDBI Bank’s interest earned has increased by 0.57 per cent to Rs 7303 crore in Q1FY17. The bank’s operating profit too has risen by 28.88 per cent to Rs 6753 crore in Q1FY17 on a yearly basis. Its net profit also has boosted by 78.35 per cent to Rs 241 crore in Q1FY17 as compared to same period in previous financial year.

On asset quality front, IDBI Bank’s gross NPA stands at 11.92 per cent amounting to Rs 27275 crore as of Q1FY17 against 10.98 per cent amounting to Rs 24875 crore as of Q4FY16. The bank’s net NPA stands at 7.47 amounting to Rs 16248 crore as of Q1FY17, while 6.78 per cent amounting to Rs 14644 crore as of Q4FY16.

The share price of IDBI Bank has increased by 3.3 per cent on bourses after declaration of results; and is trading at Rs 68.45 on an intraday basis.

IDBI Bank provides personalised banking and financial solutions to its clients in the retail and corporate banking sectors. The bank operates through three segments viz. wholesale banking, retail banking and treasury services.