IDFC Bank reported a 40 per cent decline in second quarter net profit due to a drop in net advances and other income.
Net profit in the reporting quarter came in at ₹234 crore against ₹387 crore in the year-ago period. Net interest income (difference between interest earned and interest expended) was down 6 per cent year-on-year (y-o-y) at ₹480 crore. Other income dropped 36 per cent to ₹254 crore.
Net interest margin declined to 1.8 per cent from 2.2 per cent in the year-ago period. Deposits jumped 70 per cent to ₹38,890 crore in the reporting quarter.
The share of CASA (current account, savings account) in total deposits improved to 8.2 per cent from 7.8 per cent in the year-ago period.
Net advances declined 3 per cent to ₹48,830 crore. However, credit investments jumped 135 per cent to ₹16,347 crore.
The gross non-performing loans to gross advances ratio improved to 3.9 per cent from 6 per cent in the year-ago period.