IDFC First Bank net profit doubles to Rs 343 crore in March quarter
New Delhi:
IDFC First Bank on Saturday reported a more than two-fold increase in net profit to Rs 343 crore in the March 2022 quarter, on account of strong core operating income and lower provisioning for bad loans.
The private sector lender had reported a net profit of Rs 128 crore in the same quarter of the previous fiscal.
IDFC First Bank said in a regulatory filing that total income rose to Rs 5,384.88 crore during the January-March quarter of 2021-22 as against Rs 4,811.18 crore in the same period of FY15.
“Net profit for Q4-FY22 grew by 168 per cent to Rs 343 crore from Rs 128 crore in Q4 FY21, driven by strong growth in core operating income and lower provisioning,” the bank said.
Net interest income (NII) during the quarter grew 36 per cent to Rs 2,669 crore, while fee and other income grew 40 per cent to Rs 841 crore.
Provisions other than tax declined by 36 per cent to Rs 369 crore in the March 2022 quarter, the lender said, with asset quality at gross and net levels down 45 and 33 basis points to 3.40 per cent and 1.53 per cent, respectively. ,
“Our core operating profit has more than doubled (106 per cent) to Rs 836 crore for Q4 22, as compared to Rs 405 crore in Q4 FY 21. This reflects the power of the business model we are building. Our PAT 168. From Rs 128 crore to Rs 343 crore on a year-on-year basis, said V Vaidyanathan, MD and CEO, IDFC First Bank.
However, net profit fell 68 per cent to Rs 145 crore in 2020-21 from Rs 145 crore for 2021-22, as it had to manage the impact of the second wave of COVID-19 on its assets in the first quarter of FY22. Due to higher provisioning, IDFC said the first bank.
The total income during the year increased from Rs 18,179.19 crore to Rs 20,394.72 crore.
NII for FY22 grew by 32 per cent to Rs 9,706 crore as against Rs 7,380 crore in FY21. Fees and other income increased by 66 per cent to Rs 2,691 crore from Rs 1,622 crore.
The lender said that it has not utilized the COVID provision during the quarter and has made a COVID provision of Rs 165 crore as on March 31, 2022.
“The bank is on track to meet the broader asset quality and credit cost guidance. Based on improved portfolio performance indicators, the bank is expected to achieve its credit cost guidance on assets funded for FY23 at around 1.5 per cent. For sure,” it said.
The bank said that it sees the impact of the second Covid wave gradually easing and the recovery is showing an improvement in asset quality.
An infrastructure loan (Mumbai Toll Road Account), which became NPA during Q1 FY22, continued to partially pay its dues and the principal outstanding during the quarter declined by Rs 25 crore to Rs 794 crore as on March 31, 2022 Done, the lender said.
Gradually, the cash flow of this account is likely to become regular, as the volume of traffic on the Mumbai road normalises.
“Although the account is currently NPA, we expect our dues to be cleared and do not expect the final loss on this account in due course.”
“At the overall bank level, but for this one infrastructure account, which we expect to recover in due course without any economic loss, the GNPA (gross non-performing assets) and NNPA (net NPA) of the bank The year would have been 3.04 per cent and 1.02 per cent respectively as on March 31, 2022, and the PCR (Provision Coverage Ratio) of the bank would have been 77 per cent, including technical write-offs,” the bank said.
Among other things, the bank’s CASA (Current Account Savings Account) deposits grew by 11 per cent to reach Rs 51,170 crore as on March 31, 2022 from Rs 45,896 crore in the year-ago period.
Current account deposits now account for 18.29 per cent of total CASA as compared to 11.80 per cent at the end of March 2021.
Vaidyanathan said in the retail business, which is one of the key drivers of growth, NPAs continued to decline in the last four quarters.
“Our Retail Gross NPAs declined from 4.01 per cent in FY2011 to 2.63 per cent in FY2012, and Net NPAs declined from 1.90 per cent to 1.15 per cent. Based on internal analysis, we are working towards reducing our retail GNPA and NNPA. are on the way. 2 per cent and less than 1 per cent, as directed earlier,” he said.