IDFC First Bank’s 3rd-quarter net profit doubles, hits Rs 605 crore

IDFC First Bank

IDFC First Bank recorded a two-fold increase in net profit to Rs 605 crore for the quarter ending December 2022, owing to increased operating income.

For the fiscal year 2021-22, the private sector bank declared a profit of Rs 281 crore.

IDFC First Bank stated in a stock exchange filing that its total income climbed to Rs 7,064.30 crore in the third quarter of this fiscal year from Rs 5,197.79 crore in the equivalent quarter of 2021-22.

The bank also stated that customer deposits surged by 44 per cent from Rs 85,818 crore on December 31, 2021 to Rs 1,23,578 crore on December 31, 2022.

CASA deposits increased by 39 per cent year on year, from Rs 47,859 crore in December 2021 to Rs 66,498 crore in December 2022.

In terms of asset quality, it stated that the gross NPA fell from 3.96 per cent at the end of December 2021 to 2.96 per cent in December 2022.

Net NPA fell to 1.03 percent in the quarter ended December 2022, down from 1.74 percent the previous quarter.

Net interest income (NII) increased by 27 per cent year on year, from Rs 2,580 crore in the third quarter of 2021-22 to Rs 3,285 crore in the current fiscal’s October-December quarter.

Fee and other income increased by 50 per cent YoY to Rs 1,117 crore in the fiscal year ending December 2022.

“… we have registered our highest ever profit of Rs 605 crore in Q3-FY23 and our return on equity has now moved firmly into double digits,” said V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank.

He also stated that the bank has a solid basis, with a CASA ratio of 50 per cent and a strong retail deposit franchise providing 77 per cent of total client deposits.

The nine-month net profit for 2022-23 climbed to Rs 1,635 crore from Rs 197 crore in April-December 2021-22.

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The bank further stated that while core operational income (NII plus fees, excluding trading profits) increased by 32 per cent to Rs 4,402 crore in the December quarter of 2022-23, operating expenses increased by just 23 per cent, resulting in enhanced operating leverage.

As a result, Core Operating Profit (excluding trading profits) increased by 64 per cent year on year to Rs 1,225 crore in the October-December quarter of 2022-23.

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