Idfc First Bank’s net income jumps 168% year-on-year in the March quarter


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

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