India Earnings Season: IDBI Bank results, September 2011

IDBI Bank results

 

Though we have published in depth reports pursuant to the bank’s quarterly announcements earlier, we rather worry we may have the wrong end of the stick given IDBI’s 8% exposure to the Power sector loans and the historically high NPA rate moving from 1.25% to a higher 1.57% this quarter.

 

Bank increased profits 20% after relief from 70% PCR by RBI and CASA has improved to 19%

 

CASA is a low 19% with a lack of transformation mandate from the government for the bank. Its Advances are bigger than Axis with a book of INR 1.56 Tln or $31 bln (20% yoy)

 

NII tracked a stagnant 1122 crs or $224.4 mln and NIM fell 7bp to 2%, Cost of Funds a high 8.40% for its aggressive retail push supporting its higher cost structure model Expansion is already limited but the bank remains attractive to depositors and reach to good credit seekers remains a plus

2 thoughts on “India Earnings Season: IDBI Bank results, September 2011

  1. Pingback: Bank Results Season (India Earnings Season – September 2011 (Q2 FY2012) ) SBI strikes the growth wells « A blog of blogs

  2. Pingback: India Earnings season: (Bank Results Season) : Axis grows NPA beyond expectations « A blog of blogs

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