The 2% rise in shares indicates a positive market response to the 62% increase in consolidated profit for the quarter ended June 2023. The reported net profit of Rs 1224 crore in Q1 is a substantial improvement compared to the Rs 756 crore profit in the same period of the previous fiscal year. This growth in profit could be a result of various factors, such as improved operational efficiency, increased revenue, cost-cutting measures, or a combination of these factors.
As a LIC-owned lender, IDBI Bank’s performance has significant implications for both LIC and the banking sector in general. A rise in profitability is likely to boost investor confidence and may attract more investors to the bank’s shares.
The significant increase in operating profit and net interest income for IDBI Bank Ltd in the June quarter is undoubtedly a positive sign for the institution. Here are the key highlights:
- Operating Profit: IDBI Bank’s operating profit surged by 47% in the June quarter, reaching Rs 3,019 crore. This is a substantial improvement compared to the operating profit of Rs 2,052 crore in the same quarter of the previous fiscal year. The rise in operating profit suggests that the bank’s core operations and business activities have become more efficient and profitable during this period.
- Net Interest Income (NII): IDBI Bank witnessed an impressive 61% growth in net interest income in the last quarter, which amounted to Rs 3,998 crore. Comparatively, the NII was Rs 2,488 crore for the first quarter of 2023. Net interest income represents the difference between the interest earned by the bank from its lending activities and the interest it pays on deposits. The significant growth in NII indicates that the bank’s lending activities have been profitable and the interest earned has exceeded interest expenses.
After the Q1 results, IDBI Bank shares rose 2.45% to Rs 58.85 against the previous close of Rs 57.44 on BSE. Market cap of the firm climbed to Rs 62,729 crore.
