MUMBAI: IDBI Bank on Wednesday said that it has recovered the entire dues pertaining to Kingfisher Airlines, which helped the lender report a 318% jump in net profit for the quarter ended June 2021.
Announcing the Q1 results, MD & CEO Rakesh Sharma said that Rs 278 crore by way of principal and Rs 331 crore by way of interest income, amounting to an aggregate of Rs 753 crore, was recovered from Kingfisher Airlines. Last month, the airline’s lenders recovered Rs 7,181 crore from shares of United Breweries belonging to promoter Vijay Mallya. The Enforcement Directorate released the absconding promoter’s assets in favour of banks.
IDBI Bank reported a net profit of Rs 603 crore for the quarter ended June 2021 as against a net profit of Rs 144 crore in the year-ago period. Sharma said that the bank expected to bring down its gross non-performing assets to below 15% by recovery, growing its loan book and by selling around Rs 11,000 crore of loans in default to the National Asset Reconstruction Company promoted by banks.
The rise in profits was driven by treasury gains, recoveries, an increase in forex earnings and dividends from a subsidiary. “We expect to grow by 10% as a universal bank. We expect that the present 60:40 ratio of retail and corporate business will continue,” said Sharma. IDBI Bank is classified as a private lender after the Life Insurance Corporation acquired a stake from the government. The government and LIC propose to sell their stake in the bank to private investors.
