IDFC First Bank Q3 profit doubles to ₹605 cr
IDFC First Bank on Saturday reported a two-fold jump in its net profit to ₹605 crore for the quarter ending December 2022, driven by growth in operating income.
The private sector bank had reported a profit of ₹281 crore for the October-December period of 2021-22.
The bank’s total income increased to ₹7,064.30 crore in the third quarter this fiscal from ₹5,197.79 crore in the corresponding quarter of 2021-22, IDFC First Bank said in a stock exchange filing.
The bank further said customer deposits increased by 44% from ₹85,818 crore as of December 31, 2021, to Rs 1,23,578 crore at end-December 31, 2022.
CASA deposits grew by 39 per cent year-on-year from Rs 47,859 crore as of December 2021 to ₹66,498 crore as of December 2022.
On the asset quality, it said the gross NPA improved from 3.96% at end-December 2021 to 2.96% as of December 2022.
The Net NPA at quarter ending December 2022 improved to 1.03% from 1.74% in the year-ago quarter.
Net interest income (NII) grew 27% year-on-year from ₹2,580 crore in the third quarter of 2021-22 to ₹3,285 crore in October-December quarter of the current fiscal.
Fee and other income grew by 50% annually to ₹1,117 crore in the quarter ending December 2022.
“… we have registered our highest ever profit of ₹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 further said a strong foundation has been built for the bank with CASA ratio at 50% and strong retail deposit franchise contributing 77% of the overall customer deposits.
Net profit for the nine months of 2022-23 increased to ₹1,635 crore from net loss of ₹197 crore in April-December 2021-22.
The bank further said while the core operating income (NII plus fees, excluding trading gains) grew 32% to ₹4,402 crore in the December quarter of 2022-23, the operating expense grew slower than income growth at only 23%, thus resulting in improved operating leverage.
Consequently, the Core Operating Profit (excluding trading gains) grew by 64% year-on-year to ₹1,225 crore for the October-December quarter of 2022-23.
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