IDFC FIRST Bank on Saturday reported first-quarter net profit climbed 61% year-on-year to ₹765 crore, from ₹474 crore a year earlier, driven by strong growth in core operating income.
The bank said net interest income (NII) grew 36% YoY to ₹3,745 crore. Net interest margin (gross of IBPC and selldown) was 6.33%.
Core operating income (NII plus fees, excluding trading gains) grew 39% to ₹5,086 crore.
Provisions increased 55% YoY to ₹476 crore, the private lender said.
Customer deposits increased by 44% YoY to ₹1,48,474 crore and funded assets (including advances & credit substitutes) increased by 25% YoY to ₹1,71,578 crore.
Gross NPA (GNPA) of the bank improved to 2.17%, from 3.36% a year earlier. Net NPA (NNPA) improved to 0.70%, from 1.30%.
Provision coverage ratio of the bank increased to 83.12% as of June 30, from 73.13% as of June 30, 2022.
Capital adequacy was at 16.96% with CET-1 ratio at 13.70% as on June 30.
“We continue to build a strong franchise with a high CASA ratio of 46.5%.,” said V. Vaidyanathan, Managing Director and CEO. “Our retail deposits are growing well, based on our strong positive brand, ethics, customer-friendly products and digital innovations,” he added.
“Our asset quality continues to remain strong. On the retail, rural & SME business, where our bank particularly specialises in, the gross NPA has come down to as low as 1.53% and the net NPA has come down to 0.52%,” the CEO observed.
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