IDBI Bank : Financial results for the quarter ended June 30, 2019

सीआइएन/(CIN)L65190MH2004GOI148838

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PR/1379

IDBI Bank Exhibits improved Asset Quality, with PCR at 87.79%

Highlights of Q1 FY 2020 (Quarter ending June 30, 2019) Financial Results

Business

Business Composition improved in respect of CASA and Retail Advance portfolio

• CASA increased to Rs. 99,590 crore as on June 30, 2019 as against Rs. 85,180 crore as on June 30, 2018, an increase of 16.92%.
• Share of CASA in Total Deposits improved to 43.15% as on June 30, 2019 as against 35.51% as on June 30, 2018.
• The composition of Advances portfolio Corporate V/s Retail was realigned to 48:52 as on June 30, 2019 as against 53:47 as on June 30, 2018.
• Structured Retail Assets portfolio increased by Rs.8,763 crore (19%) to Rs.54,938 crore as on June 30, 2019 from Rs.46,176 crore as on June 30, 2018.

Profitability

• Operating profit for Q1-2020 was Rs.951 crore as against Rs. 1,081 crore for Q1-2019.
• Net Interest Income was at Rs. 1,458 crore for Q1-2020 as against Rs. 1,639 crore for Q1-2019.
• Net Interest Margin was at 2.13% for Q1-2020 as compared to 2.17% for Q1-2019.

∙ Net Loss reported for Q1-2020 is Rs. 3,801 crore.

• Cost of Funds improved to 5.63% for Q1-2020 as compared to 5.72% for Q1-2019.
• Cost of Deposits improved to 5.29% for Q1-2020 as compared to 5.41% for Q1-2019.

Asset Quality

• Gross NPA ratio improved to 29.12% as on June 30, 2019 as against 30.78% as on June 30, 2018.
• Net NPA ratio improved to 8.02% as on June 30, 2019 as against 18.76% as on June 30, 2018 and 10.11% as on March 31, 2019. Net NPAs reduced to Rs. 10,963 Crore as on June 30, 2019 from Rs. 29,981 Crore as on June 30, 2018.
• Provision Coverage Ratio (PCR-including Technical Write-Offs)improved to 87.79% as on June 30, 2019 from 64.45% as on June 30, 2018.
• Recovery from technically write off accounts improved to Rs. 79 crore in Q1-2020as against Rs. 69 crore in Q1-2019.
• Recovery from NPAs was Rs. 729 crore in Q1-2020.
• First Time NPAs reduced by 55 % from Rs.7,799 crore in Q1-2019 to Rs.3,486 crore Q1-2020.

Capital

• Tier 1 capital and CRAR stood at 6.14% and 8.14% respectively as on June 30, 2019 as against 6.18% and 8.18% as on June 30, 2018.
• Risk Weighted Assets (RWA) reduced by 15% to Rs.1,70,734 crore as on June 30, 2019 as against Rs.1,99,824 crore as on June 30, 2018.

Achievements & Business potentials :

• LIC of India, the biggest insurance company in India, and IDBI Bank Ltd, have post acquisition of 51% share by LIC of India, in our Bank executed MOUs/Agreements in the areas of Bancassurance, Rapid Pay, Bulk/NEFT Payments, Collections, ACH Debit and Direct Debit.
• The Bank has finalized the scheme for onboarding of LIC agents as Home Loan agents for IDBI Bank.
• The LIC renewal premium collection is enabled through Cash, IDBI Cheque, Merchant invoices (in cash), Internet Banking and POS Terminals of Bank.

Focus Area

• Emphasis on Retail Business, improving Asset Quality & Efficiency.
• Improving CASA and Retail Deposit base thereby containing cost of deposits.
• Strengthening the Balance Sheet through augmenting Retail Business and realignment of Corporate and Retail portfolio.
• Focus on NPA resolution, recovery from written off cases and improving the provision coverage and containing the slippages.
• Reviewing all the Risk Management and Credit Policies to strengthen the portfolio.

Mumbai, August 14, 2019: The Board of Directors of IDBI Bank Ltd. (IDBI Bank) met in Mumbai today and approved the financial results for the Quarter ended June 30, 2019.

Significant Developments between April-June 2019

IDBI Bank was conferred with BFSI Award under Digital Financial Inclusion category at 4th India Banking Reforms Conclave held at Mumbai on May 29, 2019 for undertaking excellent steps to spread digital financial inclusion in remote areas.

IDBI Bank was awarded with the National Award for its outstanding performance in SHG Bank Linkages 2018-19 (Private Sector Banks Category) under Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY - NRLM).

Mumbai, August 14, 2019

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सीआइएन/(CIN)L65190MH2004GOI148838

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