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NII and net profit at IDFC First Bank increased in the Q1

A significant increase in net interest income and better asset quality were the primary drivers of IDFC First Bank’s reported 61.3 percent YoY increase in net profit for the first quarter of the current financial year.

The net interest income (NII) of the Mumbai-based private sector lender increased by 36% YoY to Rs 3,745 crore, while the net interest margin increased by 56 basis points to 6.33 percent from the same time last year.

IDFC First Bank

Fee and other revenue increased by 49% year over year to Rs 1,341 crore, while core operating revenue increased by 39% to Rs 5,086 crore. Gross non-performing assets (GNPsA) as a percentage of all loans were 2.17 percent, which is lower than the 3.36 percent from a year ago and the 2.51 percent from the preceding quarter. The net NPA ratio decreased from 0.86 percent in Q4FY23 and 1.3 percent in the same period to 0.70 percent this quarter.

Gross NPAs decreased from Rs 3,884.45 crore in the March quarter to Rs 4,354.75 crore in the same quarter last year, reaching Rs 3,603.38 in absolute terms. In comparison to the same time last year, net NPAs totaled Rs 1,149.03 crore, a decrease from Rs 1,653.82 crore.

  • IDFC First Bank’s net profit surged 61.3 percent YoY due to improved asset quality.
  • Gross NPAs drop from 3,884.45 crore to 4,354.75 crore in Q3 2018.
  • Retail deposits grew 44% YoY, and CASA deposits 27% YoY.

From 2.12 percent in the same quarter last year and 1.65 percent from January to March, gross non-performing assets (NPAs) in retail, rural, and SME financing decreased to 1.53 percent.

With urban retail business collection efficiency staying strong at 99.5%, the bank has been lowering its exposure to the infrastructure sector since FY 2018. From 73.13 percent in the same period last year, the provision coverage ratio increased to 83.12 percent this time.

Retail deposits made up 77% of all client deposits in the June quarter, which saw a growth of 44% YoY to Rs 1.49 lakh crore. Current account savings account (CASA) deposits increased 27% YoY to Rs 71,765 crore, down from 50% in the same period last year.

Through the issuance of equity shares and/or other equity-linked securities, the board authorized raising funds to Rs 3,000 crore over the course of a year. A three-year term beginning on December 18, 2023, was added to Vishal Mahadevia’s previous appointment as a non-executive non-independent director of the bank. The share price of IDFC First Bank increased 1.66 percent from the previous closing to close at Rs 83.94.

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