SIDBI net profit rose 40 % in 9monthsof FY19 vs same period in FY18.
Mumbai/New Delhi: Financial performance highlights Industries Development Bank of India (SIDBI), the all India financial institution engaged in creating an integrated credit and development support ecosystem for Indian Micro and Small Enterprises (MSEs).
Nine months (April – December 2018) FY19 vs nine months (April – December 2017) FY18
- Total advances (net of provisions) recorded a growth of 61.3% YoY to Rs. 1,32,517.01 cr as on December 2018 from Rs. 82,150.40 cr as on December 2017.
- Operating profit (before provision) recorded a Year-on-Year (YoY) growth of 22.8% in 9MFY19 over 9MFY18.
- Net profit is higher by 39.9% in 9MFY19 over 9MFY18 mainly due to higher income from increased portfolio.
- Net Interest Income (NII) growth at 20.8% to Rs.1,857.92 cr in 9MFY19 from Rs. 1,537.76 cr in 9MFY18.
- Non-interest income increased by 13.6% YoY to Rs.355.25 cr in 9MFY19from Rs.312.81 cr in 9MFY18.
Asset Quality
- Gross Non-Performing Assets (GNPA)ratio decreasedby 36 bps from 1.09% to 0.73% and Net NPA (NNPA) ratio decreased by 26 bps from 0.49% to 0.23% as on December2018.
- Provision Coverage Ratio (PCR) was at 86% as on December2018, an increase of 400 bps from December2017 level.
Asset Quality – Table
| Gross NPA (%) | Net NPA (%) | PCR (%) | |
| December 2017 | 1.09 | 0.49 | 82 |
| December 2018 | 0.73 | 0.23 | 86 |
Gross NPAs increased from Rs.897.31 cr as on December2017 to Rs.968.33 cr as on December2018, whereas Net NPA decreased from Rs. 406.06 cr to Rs. 309.45 cr during the same period.
Third quarter (October – December 2018) FY19 vsthird quarter (October – December 2017) FY18
- Operating income increased by 71.1% to Rs. 2,609.34 cr in Q3FY19 from Rs. 1,525.01 cr in Q3FY18.
- NII improved by 40.3% to Rs.725.59 cr in Q3FY19 from Rs.517.15 cr in Q3FY18.
- Non-interest income decreased by 19.41% to Rs.137.99 cr in Q3FY19 from Rs.171.22 cr in Q3FY18.
- Gross profit increased by 31.4% to Rs. 737.61 cr in Q3FY19 from Rs. 561.32 cr in Q3FY18.
Key Financial Ratios
- Average yield declined by 29 bps to 5.3% as on December2018 from 5.6% as on December 2017.
- Net interest margin (annualised) went down by 64 bps to 1.86% as on December2018 from 2.50% as on December2017 due to focus on low risk assets and increased cost of funding.
- Cost to income ratio improved by 216 bps to 16.8% during 9MFY19 from 18.9% during 9MFY18.
Details of Profit and Loss account
Rs. in crore
| Quarter ended | Nine monthsended | Growth (%) | ||||
| Q3FY19 | Q3FY18 | 9MFY19 | 9MFY18 | Q3FY19 over Q3FY18 | 9MFY19 Over 9MFY18 | |
| Interest income | 2,482.83 | 1,413.91 | 6,650.90 | 4,164.12 | 75.6 | 59.7 |
| Other income | 126.51 | 111.10 | 198.23 | 266.09 | 13.9 | -25.5 |
| Total income | 2,609.34 | 1,525.01 | 6,849.13 | 4,430.21 | 71.1 | 54.6 |
| Interest expenses | 1,883.75 | 1,007.86 | 4,991.21 | 2,892.45 | 86.9 | 72.6 |
| Net interest income | 725.59 | 517.15 | 1,857.92 | 1,537.76 | 40.3 | 20.8 |
| Operating expenses | 2,009.72 | 1,134.91 | 5,362.39 | 3,242.72 | 77.1 | 65.4 |
| Operating profit (before provision) | 737.61 | 561.32 | 1,841.99 | 1,500.30 | 31.4 | 22.8 |
| Total provisions (net) and taxes | 197.28 | 158.14 | 409.14 | 476.15 | 24.7 | -14.1 |
| Net profit | 540.33 | 403.18 | 1,432.85 | 1,024.15 | 34.0 | 39.9 |
Shri Muhammad Mustafa, IAS, Chairman & Managing Director said,“In a scenario when the banking sector is reeling under pressure, we have achieved encouraging growth in our financial performance. Credit demand to the MSEs sector continues to be strong. We expect to maintain the growth momentum as we continue to move forward with our SIDBI Vision 2.0 which aims to promote inclusive growth driven by deeper engagement with MSEs.”
