IDBI Bank Limited

Divya Purohit

ICICI SECURITIES LIMITED

Rakesh Sharma

MANAGING DIRECTOR AND

Samuel Joseph

DEPUTY MANAGING DIRECTOR

Suresh Khatanhar

DEPUTY MANAGING

P. Sitaram

EXECUTIVE DIRECTOR & CHIEF

828 Crore

e recorded a highest every quarterly net profit in the history of the bank by showing a profit of 828 Crores, which is 46% Y-o-Y growth and 10% Q-o-Q growth. The other parameters also like operating profit

46%

every quarterly net profit in the history of the bank by showing a profit of 828 Crores, which is 46% Y-o-Y growth and 10% Q-o-Q growth. The other parameters also like operating profit, net interest

10%

fit in the history of the bank by showing a profit of 828 Crores, which is 46% Y-o-Y growth and 10% Q-o-Q growth. The other parameters also like operating profit, net interest income and net intere

56.19%

interest margin have shown substantial improvement. CASA ratio, we have been able to maintain at 56.19% and there has been overall growth of 54 basis points Q-o-Q. Similarly ROI which we had indicated

54 basis point

ovement. CASA ratio, we have been able to maintain at 56.19% and there has been overall growth of 54 basis points Q-o-Q. Similarly ROI which we had indicated that it will above 1%. The ROS for the quarter was 1

1%

overall growth of 54 basis points Q-o-Q. Similarly ROI which we had indicated that it will above 1%. The ROS for the quarter was 1.09% growth of 30 basis points Y-o-Y and on the asset quality front

1.09%

ts Q-o-Q. Similarly ROI which we had indicated that it will above 1%. The ROS for the quarter was 1.09% growth of 30 basis points Y-o-Y and on the asset quality front, net NPA is 1.15%, reduction of

30 basis point

y ROI which we had indicated that it will above 1%. The ROS for the quarter was 1.09% growth of 30 basis points Y-o-Y and on the asset quality front, net NPA is 1.15%, reduction of 56 basis points Y-o-Y and 1

1.15%

the quarter was 1.09% growth of 30 basis points Y-o-Y and on the asset quality front, net NPA is 1.15%, reduction of 56 basis points Y-o-Y and 10 basis points Q-o-Q. We have the highest PCR of 97.86%

56 basis point

growth of 30 basis points Y-o-Y and on the asset quality front, net NPA is 1.15%, reduction of 56 basis points Y-o-Y and 10 basis points Q-o-Q. We have the highest PCR of 97.86% in the industry. As we have

10 basis point

ts Y-o-Y and on the asset quality front, net NPA is 1.15%, reduction of 56 basis points Y-o-Y and 10 basis points Q-o-Q. We have the highest PCR of 97.86% in the industry. As we have been doing in the past th

97.86%

s 1.15%, reduction of 56 basis points Y-o-Y and 10 basis points Q-o-Q. We have the highest PCR of 97.86% in the industry. As we have been doing in the past this quarter also we have made some proactiv

“I would also like to take a moment to wish everyone a great Diwali, which we will be celebrating soon.”

“Overall, we can expect that the retail to corporate will remain within a range of plus or minus 62 to 68 for retail and the balance coming from corporate.”

“We would see some amount of increase in the cost of deposits, but we expect that we will also see a corresponding improvement in the advances side so that we will be able to maintain our NIM at the healthy levels that we have currently.”

“In the previous few interactions we had indicated that there is some scope to increase the composition of bulk deposits because we are at quite a low place here, so we will look wherever we find it competitive we will be raising bulk despoils and we can see that 5.5% even going up to say 8% or 10% or slightly beyond that also.”

“Large corporate also we will be looking at, but that will be on with a lesser emphasis.”

“We have not yet set up any DBU to anticipate a person but we do have plans eventually to do that.”

“Now the guidance part, of course, we had at the beginning of the year, we had given certain numbers.”

“As regards the business growth, advances as against 10% to 12% target, we have grown by 17% in net advances, but the ROA is also above 1%, and the slippage ratio is well within control.”

“As far as gross NPA is concerned, we had indicated that we will be below 15% by March 31, 2023.”

“So with that, we expect that some assets will be transferred to NARCL by 31st March, we will be much below the 15% because the number, which we had indicated earlier.”

Rakesh Sharma

15

P. Sitaram

11

Nitin Bhalla

9

Moderator

7

Pranav

4

Divya Purohit

1

Divya Purohit

Thank you Seema. Welcome everyone to IDBI Bank results call. Today from the management, we have with us Mr. Rakesh Sharma, Managing Director and CEO, Mr. J Samuel Joseph, Deputy Managing Director, Mr. Suresh Khatanhar, Deputy Managing Director and Mr. P. Sitaram, Executive Director and CFO. Thank you so much for the opportunity Sir and over to you Mr. Sharma.

Rakesh Sharma

Thank you Madam. Good evening ladies and gentlemen. It is a great pleasure to welcome all of you to this analyst meet for our second quarter financial year 2023 result announcement. Thank you so much for attending this conference. I would also like to take a moment to wish everyone a great Diwali, which we will be celebrating soon. Let there be an abundance of light in each one of our lives both professionally and personally. The Indian economy today is witnessing a significant growth across all sectors despite the inflationary hurdles and global headwinds. We are now the fifth major economy in the world and are performing better than many other major global economy. As you may leave pandemic behind us, the banking system along with our entire economy is looking forward to a sustained growth rate. IDBI bank continues to move on its growth trajectory with yet another strong quarterly performance. While our CFO will present the highlights of our quarterly results to you, let me brief you

P. Sitaram

Good afternoon. Happy Diwali to all of you and thank you for joining this conversation. The bank has reported a PAT of 828 Crores which is the highest in its quarterly amount recorded in its history. The PBT is at 1437 Crores, operation profit of 2208 Crores. NII of 2738 and the NIM has come at 4.37. Overall, the ROA for the quarter is 1.09 on annualized basis and if you take the half yearly, it is about 1.03%. The ROE is above 15.2%. Cost to income continues to be well under control 42.29 and capital is comfortable at tier one of 17 and total CRAR of about 19.5 without taking the half yearly profit into account. Total RWA has gone up about 4000 Crores, 1,57840 Crores. It is mainly on the back of growth in advance. Cost of deposit stands at 3.44 and cost of funds at 3.72 more or less in line with Q2 and a marginal increase year-on-year. CASA is slightly higher at 56%. The deposits have grown to 2,30,000 Crores. Net NPA stands at 1.15. GNPA has come down due to recovery as well as techn

Rakesh Sharma

Now the guidance part, of course, we had at the beginning of the year, we had given certain numbers. So as you will see from the presentation which our CFO has made, we have over performed on almost all the parameters. As regards the business growth, advances as against 10% to 12% target, we have grown by 17% in net advances, but the ROA is also above 1%, and the slippage ratio is well within control. Against our estimate of 2.5%, it is 1.31%, and the credit cost also is lower than that. ROA and ROE also we have been able to improve, and the NPA level we had indicated that net NPA at 1.25%. So we have already reached 1.15%. As far as gross NPA is concerned, we had indicated that we will be below 15% by March 31, 2023. Now we have reached almost 16%. So that way with the transfer of some assets to NARCL, which are identified for transfer, and now NARCL has already started giving some offers. So with that, we expect that some assets will be transferred to NARCL by 31st March, we will be