IDFC First Bank Q1 results: Net profit grows 61% to Rs 765cr

IDFC First Bank

IDFC First Bank reported a net consolidated profit of Rs.765 crore, a 61 per cent increase over the previous fiscal’s similar quarter profit of Rs.474 crore. The bank’s net interest income increased 36 per cent YoY, from Rs. 2,751 crore in Q1FY23 to Rs. 3,745 crore in Q1FY24.

IDFC First Bank’s core operating profit increased by 45 per cent to 1427 crore in the April-June quarter, up from 987 crore in Q1FY23. The net interest margin increased year on year from 5.77 per cent in Q1FY23 to 6.3 per cent in Q1FY24, but fell slightly from 6.4 per cent in the previous quarter.

Gross non-performing assets (GNPA) fell to 2.17 per cent on 30 June 2023, down from 3.36 per cent on 30 June 2022 and 2.51 per cent on 31 March 2023. Net Non-Performing Assets (NNPA) fell from 1.30 per cent in June 2022 to 0.70 per cent in June 2023. The NNPA was 0.86% in the prior quarter.

According to IDFC First Bank, its collection effectiveness for urban retail business (excluding prepayments and EMI arrears) in the current bucket remains high at 99.5 per cent.

The IDFC First Bank’s provision coverage ratio increased to 83.12 per cent as of June 30, 2023, up from 73.13 per cent as of June 30, 2022. The standard restructured book was 0.47 per cent of the financed asset book as of June 30, 2022, and 0.59 per cent as of March 31, 2023.

“We continue to build a strong franchise with a high CASA Ratio of 46.5%. Our retail deposits are growing well, based on our strong positive brand, ethics, customer-friendly products, and digital innovations. We are happy to share that our asset quality continues to remain strong. On the Retail, Rural & SME business, where our Bank particularly specializes in, the Gross NPA has come down to as low as 1.53% and the Net NPA has come down to 0.52%,” V Vaidyanathan, Managing Director, and Chief Executive Officer, IDFC FIRST Bank said.

Also Read | IDFC FIRST Bank, Mastercard & Club Vistara launch new travel credit card

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