IDFC First Bank Q1 Results: Net profit jumps 61% YoY to ₹765 crore; asset quality improves

livemint.com:

₹765 crore, 61% up from ₹474 crore during the corresponding quarter in the previous fiscal. The net interest income of the bank grew 36% from Rs. 2,751 crore in Q1FY23 to Rs.

3,745 crore in Q1FY24. During the April-June quarter, the core operating profit of IDFC First Bank was up by 45% to ₹1427 crore from ₹987 crore during Q1FY23. The net interest margin grew year on year from 5.77% in Q1FY23 to 6.3% in Q1FY24 but declined marginally from 6.4% recorded during the previous quarter.

Gross Non-Performing Assets (GNPA) improved to 2.17% as of 30 June 2023 from 3.36% on 30 June 2022 and 2.51% as of 31 March 2023. The Net Non-Performing Assets (NNPA) saw an improvement from 1.30% in June 2022 to 0.70% in June 2023. During the previous quarter, the NNPA stood at 0.86%.

The IDFC First Bank said that its collection efficiency for urban retail business (excluding prepayments and EMI arrears) in the current bucket continues to remain high at 99.5%. The provision coverage ratio of the IDFC First Bank has increased to 83.12% as of June 30, 2023, from 73.13% as of June 30, 2022. The standard restructured book stood at 0.47% of the funded asset book as against 1.27% at June 30, 2022, and 0.59% at March 31, 2023.

“We continue to build a strong franchise with a high CASA Ratio of 46.5%. Our retail deposits are growing well, based on our strong positive brand, ethics, customer-friendly products, and digital innovations. We are happy to share that our asset quality continues to remain strong.