IDBI Bank on Monday reported its best-ever financials since it went under a pile of bad loans that peaked at over a third of its assets in FY18. A robust all-round performance was led by a 62 per cent jump in net profit at Rs 1,224 crore and an industry-leading margin for the June quarter.

At 5.80 per cent, up 178 basis points over the same period last year, the LIC-owned bank’s net interest margin in the June quarter was far ahead of private sector players such as Kotak Bank (5.7 per cent) and HDFC Bank (4.1 per cent).

The higher NIM was in spite of an over 40 bpsincrease in cost of deposits to 4.12 per cent.

The lender’s best show was on the asset quality front, which on a gross basis plunged from 19.90 per cent in June 2022 to a low of 5.05 per cent in the reporting period.

The net non-performing assets (NPAs) improved by 82 bps to 0.44 per cent from 1.26 per cent. This is the best asset quality numbers since the September quarter of 2017 when it topped 33 per cent, according to a regulatory filing.

The bank also has near full provision coverage at 98.99 per cent against 97.78 per cent a year ago, up by 121 bps.

Net interest income improved 61 per cent to Rs 3,998 crore from Rs 2,488 crore in the year-ago period.