IDBI Bank, owned by LIC, has earned annual profits for the first time in 5 years. It has made a profit of Rs 1,359 crore in the financial year 2020-21. It had shown a loss of Rs 12,887 crore annually in 2019-20. On the other hand, the benefit of Home First Finance has increased by 25.9%.
Profit increased 4 times in fourth quarter
IDBI Bank said that in the fourth quarter of January-March, the profit of the bank has increased almost 4 times and it has been Rs 512 crore. This benefit increased because the bank has earned more in tax refunds and net interest. The bank’s profit in the same quarter a year ago was Rs 135 crore. The bank has received Rs 2,305 crore as tax refund. Of this, Rs 1,300 crore is interest. This led to a provision of Rs 500 crore in Covid-19 by the bank. While the provision of 800 crore rupees was made as others.
Net interest income increased 38%
Its net interest income grew 38% to Rs 3,240 crore on an annual basis. In March this year, it came out of the Reserve Bank’s PCA framework. PCA means that if there is a bank loss under a fixed rule, then it comes to PCA. Because of this, the bank is neither able to open a new branch nor distribute a loan. Bank MD Rakesh Sharma said that earlier our focus was on retail. We have seen 8 to 10% growth in Mid Corporate and Lourge Corporate.
10% growth target
He said that we expect 10% growth in this financial year also. The bank’s gross NPA stands at 22.37%. It was 27.53% in the same period a year ago. Net NPA has come down from 1.19% to 1.97% during the same period.
Home First gains 100 crores
On the other hand, Home First’s profit has crossed Rs 100 crore in FY 2020-21. It has grown 25.90% year-on-year. The bank has given a total loan of Rs 452 crore in the fourth quarter. It has gained 30.4%. Its asset under management is Rs 4,141 crore. It has grown by 14.4%.
Gives loans to cheap homes
Home First provides loans to affordable homes on the basis of technology. It focuses on home buyers for the first time. It consists of low and middle income people. It was listed on the stock market in February 2021. The company’s MD and CEO Manoj Vishwanathan said that our fourth quarter results were ahead of our estimates. This year we have made a profit of a record 100 crores. This is the first time in the company’s history. He said that our collection was at 98.5% in March 2021.