IDFC First Bank registers 266% growth in profits 556 crore in the quarter ended September 30, 2022 (Q2FY23) as compared to a profit of Rs. 152 crore in the same period last year. Bank’s PAT up 17% sequentially 474 crores reported in Q1FY23. The bank’s profitability was driven by strong growth in core operating income. The bank’s asset quality improved while interest income showed strong growth. The bank plans to maintain this trend as new lines of businesses are launched.
during quartercore operating income stood at 3,947 crore growth in Q2FY23 compared to 35% 2,930 crore in Q2-FY22 aided by strong NII and fee income growth.
Meanwhile, net interest income (NII) climbed 32% 3,002 crore in Q2FY23 from 2,272 crore in the second quarter of FY22. Net interest margin increased to 5.98% in the quarter under review, from 5.83% in Q2FY22 and 5.89% in Q1FY23.
V Vaidyanathan, MD & CEO, IDFC First Bank said, “We have built a strong foundation in the bank. Bank in the last three years. This includes a strong retail liability franchise with a strong CASA ratio of 50% and excellent service standards. Our philosophy of ethical banking and high standards of corporate governance are also our pillars. I believe we can move forward in a steady manner from here.”
The MD said, “Our profit after tax has grown for the 5th consecutive quarter, which reflects the resilience of our franchise. I am happy to report that this quarter saw the highest ever profit margin in the history of the bank. have earned. 556 crore, driven by strong growth in core operating income. We are confident of sustaining this trend as new lines of businesses launched, such as cash management, wealth management, FASTag, and credit cards, are at the beginning of the journey and have immense potential to grow. ,
Further, in Q2FY23, the provisions were as follows: 424 crore, up 11% year over year. The Bank is well on track to meet asset quality and credit cost guidance. Based on improved portfolio performance indicators, the Bank is confident of achieving credit cost guidance at less than 1.5% of its total average funded assets for FY13.
In Q2FY23, the bank’s gross NPAs stood at 4.27%, as against 3.36% in Q1FY23 and 3.18% in Q2FY22. Net NPAs came in at 2.09% in Q2FY23, as compared to 1.30% in Q1FY23 and 1.09% in Q2FY22.
Vaidyanathan said, “On the asset quality front, we have a long track record of 12 years of maintaining our retail gross NPAs and net NPAs at 2% and 1% respectively, the economic slowdown in 2010-2014, demonetisation in 2016, Through GST. Implementation in 2017 and ILFS Crisis in 2018-19. I am happy to share that even after COVID, retail asset quality with GNPA of 2.03% and NNPA of 0.73% as on 30th September, 2022 is back to a long-term sustainable level.”
During the quarter, the bank’s retail and commercial finance book GNPA and NNPA stood at 2.03% and 0.73%, respectively, with QoQ improving by 8 basis points and 20 basis points, respectively.
As of September 30, 2022, IDFC First’s funded assets grew 25% year-on-year 1,45,362 crores. Retail loans and commercial loans up 40% year-on-year 1,09,669 crore, out of which home loans grew by 59% year-on-year. Corporate Book (Non-Infrastructure) up 20% y-o-y 24,883 crores. However, infrastructure financing declined by 41% year over year. 5,992 crore.
In terms of deposits, IDFC First Bank received customers’ deposits 1,14,004 crore, up 36% year-on-year. The CASA ratio stood at 51.28% on September 30, 2022, as compared to 50.04% on June 30, 2021 and 51.28% on September 30, 2021. Average CASA deposits increased 32% year over year and 13% quarter over quarter .
As on September 31, 2022, the bank has 670 branches and 812 ATMs (including recyclers) across the country. The bank has added 29 branches and 93 ATMs since 31 March 2022.
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