MONEY

IDBI Bank back in the black after five years, registers net profit of Rs 1,359 crore for FY21

LIC-controlled IDBI Bank turned profitable in the financial year ended March 2021 after five years, posting a net profit of Rs 1,359 crore for the year. In 2019-20, the lender had posted a net loss of Rs 12,887 crore. 


In the last quarter of 2020-21, the bank reported a nearly four-fold jump in its net profit to Rs 512 crore, IDBI Bank said in a media release. The bank had posted a profit of Rs 135 crore in the year-ago quarter. 


The bank, which came out of the RBI’s Prompt Corrective Action (PCA) framework earlier in March this year, said that its turnaround strategies led to the transformation. Total income during Q4FY21 rose to Rs 6,969.59 crore from Rs 6,924.94 crore in the same period of 2019-20. 


The full-year income, however, was down at Rs 24,557 crore as against Rs 25,295 crore. Gross NPA (non-performing asset) ratio improved to 22.37 per cent as of March 2021 as against 27.53 per cent in the year-ago period. Net NPA improved to 1.97 per cent from 4.19 per cent, IDBI Bank said. 


The bank said that its recovery from technically written-off accounts improved to Rs 269 crore in Q4FY21 as against Rs 105 crore in the third quarter of FY21. Provisions for bad loans and contingencies were raised to Rs 2,457 crore during the reported quarter as against Rs 1,584 crore. The bank said that it had made COVID-related provision of Rs 363 crore at the end of March 2021.

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