Wednesday 2nd December 2020

IDBI Bank reports 125% increase in Net Profit at ₹ 324 crore for Q2 FY 2021

Oct 23rd, 2020 7:27 pm | By | Category: LATEST NEWS

(THE NEWSMAN OF INDIA.COM)
In accordance with the RBI guidelines relating to COVID-19, the Bank has granted a moratorium on the payment of installments and or interest, as applicable, falling due between March 1, 2020 and August 31, 2020 (‘moratorium period’) to eligible borrowers classified as Standard, even if overdue, as on February 29, 2020, without considering them as restructuring. Bank has made COVID-19 related provision of ₹ 247 crore in March 2020 quarter and ₹ 189 crore in June 2020 quarter. Cumulative COVID-19 related provision was ₹ 436 crore as at September 30, 2020. The provision made by the Bank is more than minimum required as per the RBI guidelines.

· RBI has provided for Resolution framework for COVID -19 related stress vide circular dated August 6, 2020. Bank has as a prudent measure made provision of ₹ 270 crore towards the expected provisioning requirement for cases to be restructured under the Resolution framework.

· Pursuant to Supreme Court interim order dated September 3, 2020, in the PIL case of Gajendra Sharma vs Union Bank of India & Anr, Bank has not classified any borrower account as NPA, which has not been classified as NPA as on August 31, 2020. Bank has however maintained provision against the same under standard assets provision. However, if the Bank had classified borrower accounts as NPA after August 31, 2020, the bank’s proforma Gross NPA ratio and proforma Net NPA ratio would have been 25.20% and 2.81% respectively.

Significant Developments during Q2 2021

· IDBI Bank has launched Banking Services 24X7 on WhatsApp on October 15, 2020

· IDBI Bank has won the Trusted Brand Award in the Banks – Private category as adjudged in a consumer survey entitled Reader’s Digest Trusted Brand, 2020.

· The Bank extended its social media presence by launching its official Instagram account “idbibankofficial”.

· IDBI Bank announced the launch of six specialized gold loan branches branded as “IDBI Swarna Kalash”, by remodeling its existing branches at Bengaluru, Hyderabad and New Delhi.

· IDBI Bank has executed an agreement to sell up to 27% stake in its Joint venture Insurance arm, IDBI Federal Life Insurance Company Limited (IFLI), to other JV partners as Age Insurance International NV and The Federal Bank Limited.

· IDBI Bank became the first bank to have implemented the new feature of document embedding facility with Letter of Credit (“LC”) / Bank Guarantee (“BG”) messages over SFMS platform of IFTAS (a wholly owned subsidiary of Reserve Bank of India) through its middleware application i@Connect-SFMS (CSFMS) developed by IDBI Intech Limited.

· IDBI Bank announced the launch of two new variants of NACH Facility namely E-NACH and B-NACH for Corporate Customers at large, and more specifically for customers falling under BFSI segment. With this, the Bank will provide a Web based solution, to its Corporate Customers, to facilitate their interbank, high volume, electronic transactions which are repetitive and periodic in nature. It is a step towards adding one more product in the Digital kitty of the Bank, for its Corporate Customers.

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