IDBI Bank Reports 46% Profit Gain, But Provision Rises: Share Falls Intraday

The share price of IDBI Bank closed at Rs. 44.25 a piece on NSE, falling marginally intra day on October 21. Yesterday the bank has published its Q2 earnings report mentioning that its standalone profit increased massively by 46% YoY to Rs. 828 crore up from Rs. 567 crore in the year-ago quarter, backed by strong NII growth and operating performance. The sequential growth in the bank's profit was 10%.

The bank's net interest income also increased by 47.7% to Rs. 2,738 crore in Q2 FY23, while the net interest margin grew by 135 bps YoY to 4.37 percent. Additionally, NIM expanded 35 bps from the last quarter. IDBI Bank's net advances for Q2 stood at Rs. 1.46 lakh crore, increased by 17% YoY, while deposits stood at Rs. 2.3 lakh crore, gained 3% YoY.

However, the bank's provisions and contingencies in Q2 increased massively by 77% YoY to Rs. 1,380 crore, and sequentially it has increased by 7%. On the last trading day its share price on NSE went under pressure. But the bank's provision coverage ratio improved by 56 bps YoY to 97.86%.

In the last 5 days, the share of IDBI Bank gained by 4.86%, but the stock fell by 3.80% in the last 6 months. In the last 1 year also its share price fell by 16.82%. It is a large-cap stock with a market capitalization of Rs. 47,633 crore.

The 52-week high level of this stock is Rs. 58.50, and the 52-week low level of this stock is Rs. 30.50.

Market capitalization	Current market price	6 Months Downside	1 Year Downside
Rs. 47,633 crore	Rs. 44.25	3.80%	16.82%

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