IDBI Bank has posted a net profit of Rs 567 crore for the fiscal second quarter ended September 30, up 75% from Rs 324 crore a year ago.

Total income of the LIC-controlled bank, however, fell 10% to Rs 5,000.64 crore during the quarter, from Rs 5,569.35 crore in the year-ago quarter.

Net interest income (NII) rose 9% to Rs 1,854 crore versus Rs 1,695 crore a year ago.

Net Interest Margin (NIM) improved 32 basis points to 3.02% amid a 3.88% year-on-year drop in cost of funds. 

Gross non-performing assets (NPAs) declined to 20.92% of gross loans as of September 30, 2021, from 25.08% a year ago. Net NPAs improved to 1.62% from 2.67%.

Provisions for bad loans and contingencies rose to Rs 434.47 crore for the September quarter from Rs 389.44 crore.

"As of September 30, 2021, the bank had Covid-19 related provisions of Rs 863 crore (other than provisions held for restructuring under COVID-19 norms). The provision made by the bank is more than minimum required as per the RBI guidelines," the lender said.

The provision coverage ratio, including technical write-offs, stood at 97.27% as of September 30, 2021.

Total advances saw a mild 0.41% YoY growth to Rs 1.64 lakh crore but actually declined 0.72% on a sequential basis amid a 15% drop in corporate loans while loans to retail, agriculture and micro and small enterprises saw a mute 3.16% growth.

IDBI Bank CEO Rakesh Sharma, however, said the bank would achieve its targeted 8% growth in corporate loans this year. “We are confident of an 8% growth in mid and large companies which will need about Rs 6,000 crore of loans in the rest of the year," he added.

The bank provided for its Rs 400 crore exposure to the Srei Group, which slipped into NPA in the September quarter.