Private lender IDFC First Bank Limited on Saturday announced its financial results for the fourth quarter (Q4) ended March 31, 2024 of the fiscal year 2024 (FY24).
The bank reported a decline in net profit by 10 per cent at ₹724 crore for Q4FY24, compared to ₹803 crore a year ago.
The fall in Q4 profit is due to substantial rise in provisions.
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Its total income rose to ₹9,861 crore in the fourth quarter of FY24 from ₹7,822 crore a year ago.
IDFC FIRST Bank said that its interest income grew to ₹8,219 crore during the January- March 2024 period from ₹6,424 crore in the corresponding quarter a year ago.
Net interest income (NII) grew 24 per cent to ₹4,469 crore in Q4 FY24 from ₹3,597 crore in Q4 FY23.
Gross non-performing assets (NPAs) fell to 1.88 per cent of gross advances as of March 31, 2024, from 2.51 per cent at the end of March 2023, said the bank.
Net NPAs dropped at 0.60 per cent at the end of 2024 from 0.86 per cent.
The capital adequacy ratio of the bank declined to 16.11 per cent from 16.82 per cent at the end of previous fiscal.
Earlier this month, the Reserve Bank of India (RBI) had imposed a penalty of ₹1 crore on IDFC First Bank for non-compliance with certain directions issued by the central bank on ‘Loans and Advances – Statutory and Other Restrictions’.
The penalty was imposed in the exercise of powers vested in RBI under the Banking Regulation Act, of 1949, the RBI had said.
According to the RBI, the bank had sanctioned term loans to a public sector undertaking for financing infrastructure projects, without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations and the repayment/servicing of the said term loans was made out of budgetary resources.
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Published: 27 Apr 2024, 04:56 PM IST