Money & Banking

IDFC reports 14% drop in net profit

Our Bureau Mumbai | Updated on November 25, 2017

IDFC has reported a 14 per cent drop in net profit at Rs 482 crore in the first quarter ended June 30, 2014 due to lower non-interest income and higher loan loss provision.

The infrastructure finance company had reported a net profit of Rs 557 crore in the year-ago quarter.

The decline in profitability during the quarter comes despite 60 per cent decrease in operating expenses at Rs 55 crore (Rs 139 crore in the year-ago period).

Net interest income, non-interest income

While net interest income was almost flat at Rs 682 crore, non-interest income was sharply down by 60 per cent at Rs 134 crore (Rs 333 crore).

Non-interest income, among others, comprises fixed income from treasury, asset management fees, loan related fees, investment banking and broking income.

Net interest margin was stable at 4 per cent.

Loan loss provisions

Loan loss provisions were sharply up by 191 per cent at Rs 248 crore against Rs 85 crore in the year-ago period.

IDFC, which has bagged RBI’s in-principle approval to start a bank, has reported a 7 per cent decline in its gross loan book at Rs 53,848 crore (Rs 57,600 crore as of June-end 2013).

Gross loan approvals too declined 68 per cent to Rs 988 crore in the reporting quarter against Rs 3,115 crore in the year-ago period.

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Published on July 29, 2014
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