10-Jun-2024
2 mins read
IDBI Bank stock price has seen a significant rise of 5.4%, has reached to Rs 90.15 during Monday's intraday trading session in the market. This possible jump in the stock price may be because of the bank's receipt of an income tax refund order worth Rs 2,701.6 crore for the assessment year 2016-17.
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Income Tax Refund Details
In an official statement to the exchange, IDBI Bank announced, "We wish to inform you that IDBI Bank Ltd has received an Order under Section 254 r.w. Section 143(3) of the Income Tax Act, 1961 from the Income Tax Department, Government of India for the assessment year 2016-17 on June 07, 2024. As per the order, a refund of Rs 2,701.62 crores (including interest) has been determined."
Market Reaction & Financial Performance
The stock has shown great performance, with a 30% increase on a year-to-date basis and a 65% gain over the past year. In the Q4 of FY24, IDBI Bank reported a profit after tax of Rs 1,628.46 crore, a 44% increase compared to the same period in the FY23. The bank's Net Interest Income (NII) also rose by 12% year-on-year, which have reached to Rs 3,688 crore from Rs 3,280 crore. The return on assets (RoA) improved by 39 basis points to 1.82%, up from 1.43% in the corresponding quarter of the previous financial year.
Asset Quality Improvement
IDBI Bank showcase a significant improvement in asset quality. The gross Non-Performing Asset (NPA) ratio declined to 4.53% from 6.38% year-on-year, while the net NPA ratio improved to 0.34% compared to 0.92% in the same period last year.
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