IDFC First Bank’s net profit increased 50 per cent in the September quarter
IDFC First Bank announced its July-September quarter results for the financial year 2021-22, reporting a net profit of Rs 152 crore on a standalone basis, compared to Rs 101.41 crore in the corresponding period last year, marking a growth of 50 per cent year-on-year.
The bank’s net interest income -the difference between interest earned and interest expended, grew by 27 per cent to Rs. 2,272 crore in the second quarter of the current fiscal, compared to Rs. 1,784 crore in the year-ago period.
The net interest margin – quarterly annualized of the bank improved to 5.76 per cent for the September quarter, compared to 4.91 per cent in the year-ago period, and 5.51 per cent in the preceding April-June quarter of current fiscal. The expansion was primarily driven by the gradual improvement in the cost of funds, mainly the cost of deposits.
The bank’s core operating income – the net of interest expense and excluding trading gains, increased by 41 per cent to Rs. 2,930 crore in the September quarter, compared to Rs 2,075 crore in the year-ago period, supported by robust fee income growth and net interest income.
The fee Income growth was contributed primarily through the fees related to retail loans, transaction fees, distribution and wealth management fees, according to a regulatory filing by the bank to the stock exchanges today.
The bank’s gross non-performing assets rose to 4.27 per cent of the gross advances by the September quarter, compared to 1.62 per cent in the year-ago period. The net NPAs increased to 2.09 per cent (Rs 2,150.34 crore) from 0.43 per cent (Rs 390.95 crore).
“……we are confident that we will soon revert to the pre-Covid levels of gross and net NPA of two per cent and one per cent again in the retail business as seen from improvement in the input indicators such as cheque/ mandate bounce percentages, collection efficiency and recoveries. Looking ahead, we are feeling quite confident,” said Mr. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank.
On Friday, October 29, shares of IDFC First Bank settled 0.10 per cent higher at Rs 49.55 apiece on the BSE.
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