IDFC First Bank Q1 update: Loans rise 24% YoY to Rs 1.71 lakh crore; deposits jump 24%

economictimes.indiatimes.com:

IDFC First Bank's loans and advances grew 24% year-on-year (YoY) to Rs 1.71 lakh crore for the first quarter ended June 2023. The same stood at 1.37 lakh crore in the June quarter of last year. The sequential growth was at 6.7%.

Customer Deposits for the quarter under review rose from Rs 1.02 lakh crore in Q1FY23 to Rs 1,48,508 crore in Q1FY24, showing a YoY growth of 44%, while the QoQ growth was nearly 9%. Meanwhile, CASA deposits increased by 27% on a YoY basis. Excluding the outflow of one large government banking current account, as already called out in Q4 results, the sequential growth of customer deposits was 10%, and a QoQ growth of CASA was 3%.

The CASA ratio stood at 46.5% as of June 2023, compared to 49.8% as of March 2023, as incrementally during Q1 FY24, the bank raised more fixed deposits than CASA deposits. The lender said it continues to maintain high asset quality parameters in its loan book while maintaining the average liquidity coverage ratio at 125.4% for the quarter that ended June.IDFC First Bank had earlier announced a reverse merger with IDFC Financial Holding which will likely be finished in 10-12 months. IDFC holds about 40% stake in IDFC First Bank through IDFC Financial Holding.

IDFC Ltd is 100% held by the public. As of March-end, IDFC First Bank had total assets of Rs 2.4 lakh crore and a turnover of Rs 27,194.51 crore. For FY23, the bank reported a net profit of Rs 2437.13 crore.

IDFC had total assets of Rs 9,570.64 crore and a turnover of Rs 2,076 crore. The proposed merger will see the standalone book value per share of the bank increase by 4.9%. The bank has built a strong deposit franchise, which has grown at a CAGR of 36% in 4 years.