IDBI Bank expects FY24 deposit growth of 10% and advances growth of 15%

IDBI bank witnessed an expansion in its net interest margin in the first quarter of FY24 aided by a rise in yields. The net interest margin is now at 5.8 percent versus 4.02 percent year on year and 5.01 percent quarter on quarter. The net interest income is higher at  Rs 3,997 crore, up 60.7 percent year on year and 21.9 percent quarter on quarter.

Rakesh Sharma, MD and CEO at IDBI Bank, in an interaction with CNBC-TV18 said he is confident to sustain the net interest margins going forward. He added that the net non performing assets ratio is now at 0.44 percent versus 0.92 percent in March 2023 ended quarter due to accelerated provisions.

The bank's strong business momentum continues with 8.8 percent growth in deposits to Rs 2,44,971 crore, while advances are 20 percent higher at Rs 1,65,403 crore. For FY24, it expects deposit growth of 10 percent and advances growth of 15 percent.

The bank does not see a need to raise any fresh funds for now. "We are comfortably placed with our capital adequacy ratio and hence have no plans to raise fresh capital", says Sharma. He adds that all the subsidiaries are profit making for the company.

The shares of IDBI bank are trading 1.4 percent lower on July 25 at noon.