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The bank’s gross non-performing assets in the microfinance institution (MFI) portfolio rose to 4.52%. Despite this, the asset quality remained stable, which was attributed to higher write-offs that contributed to an 18% YoY rise in net interest income.
Deposit growth was slightly lower at 14% YoY in the Septmeber quarter compared to 14.6% in Q1 FY24. Profit after tax increased by 22% as provisions were down by 14% on a YoY basis. The bank’s contingent provisions stand at Rs 15.2 billion ($204 million).
IDBI Capital continues to maintain a ‘Buy’ rating with a target price of Rs 1,675 per share based on 1.9 times FY25’s projected book value. This reflects the bank’s strong performance and promising outlook despite some challenges in its MFI portfolio.
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