Mumbai: IDFC First Bank on Saturday reported a 168% rise in net profit for the quarter ended March on lower provisions and higher net interest income.
The private sector lender reported net income of €342 crore for the March quarter by comparison €127.81 crore a year ago.
Core interest income, or net interest income (NII), grew 36% year over year €2,669 crore in Q4 FY22 compared to €1,960 crore during the corresponding period a year ago.
The net interest margin improved to 6.27% in the fourth quarter from 5.9% in the previous quarter.
Other revenues, which include fees and commissions, increased 40% for the quarter €841 crore from €600 crore in the same period of the previous financial year.
The bank’s asset quality improved as gross non-performing assets (NPAs), or non-performing loans, decreased to 3.7% of gross advances as of March 31, 2020, from 3.96% in the same period last year.
Similarly, net NPA improved to 1.53% in the fourth quarter from 1.74% in the third quarter of the prior fiscal year.
During the quarter the bank set aside lower funds with provisions falling 36% yoy to Rs. 369 crore compared to Rs. 580 crore in Q4-FY21.
Operating expenses increased 24% year over year €2,674 crore for Q4 FY22 compared to €2,156 crore for Q4 FY21 on increased business, the bank said in a regulatory filing.
Deposits increased 13% year-on-year €93,214 crores. The loan book grew 13% driven by personal loans which posted 28% yoy growth at Rs. 83,740 crore at the end of March 31, 2022.
“In the first three years after the merger, we increased the retail deposit base (3-year CAGR of 72%) and slowed loan growth (3-year CAGR of just 6%) to strengthen the fundamentals. Now that our CASA is ~50%, we can comfortably grow our loan book between 20% and 25% for the next three years. This will give us strong operational leverage, growth and profitability. Our capitalization is strong at 16.74%,” said V Vaidyanathan, Managing Director and Chief Executive Officer, IDFC First Bank