InvestorQ : What is your take on the quarterly numbers of IDBI Bank and Bank of Maharashtra?
Rutuja Nigam made post

What is your take on the quarterly numbers of IDBI Bank and Bank of Maharashtra?

7 months ago

Let me talk about the Bank of Maharashtra first. It reported 13.16% growth in revenues for the Sep-21 quarter at Rs.3,700 crore. In terms of specific segments of the bank; revenues from treasury was flat on yoy basis. While revenues from corporate banking where lower it was more than compensated by a rise in retail banking revenues. Treasury gave a profit boost and retail banking saw EBIT turnaround from loss to profit.

Profit after tax for the quarter was up 102.37% at Rs264cr, boosted by higher revenues from interest and investments. However, the interest costs were lower. Gross NPAs fell sharply from 8.86% to 5.56%, and the all-important return on assets or ROA stands at a highly competitive level of 0.55%.

Now we turn to IDBI Bank. The bank reported -9.93% fall in revenues at Rs.5,059 crore for the Sep-21 quarter. While the much smaller treasury income picked up, the revenues from retail banking were 5% lower on lower yields and corporate banking revenues fell 36%. However, operating profits of IDBI Bank increased 14.21% due to lower interest and employee costs. The net interest margins or NIMs expanded from 2.70% to 3.02% yoy.

Profit after tax for Sep-21 quarter was up 77% at Rs.589 crore. In the latest quarter, there was a huge NPA write back of Rs.1,426 crore. Gross NPAs at 20.92% can be considered to be high in absolute terms, but net NPA level of 1.62% hints that most of the bad assets are already provided for. ROA at 0.78% is what stands out about IDBI Bank’s results.