Private sector lender IDFC Bank on Tuesday reported a 76.16 per cent drop in its net profit for the quarter ended March 31, 2018, due to eroding asset quality.
Its net profit amounted to ₹41.93 crore in the January to March quarter of 2017-18 against ₹175.95 crore in the same period a year ago.
Similarly, for the fiscal year 2017-18, IDFC Bank’s net profit declined by 15.7 per cent to₹859.3 crore when compared to ₹1,019.73 crore in 2016-17.
Gross non-performing assets as a percentage of gross advances rose to 3.31 crore in the fourth quarter of 2017-18 from 5.62 per cent in the third quarter and 2.99 per cent in the fourth quarter of 2016-17.
Net NPAs, as a percentage of net loans by end of fiscal were 1.69 per cent (₹891.16 crore), when compared to 1.14 per cent (₹576.47 crore).
IDFC Bank’s provisions and contingencies soared to ₹242.45 crore in the fourth quarter of the fiscal against a mere ₹4.79 lakh crore a year ago.
However, for the full fiscal year 2017-18, its provisions and contingencies fell to ₹236.09 crore against ₹ 282.50 crore a year ago.
The bank also reported a divergence of ₹ 270.70 crore in its gross NPAs for the year 2016-17. While it had reported gross NPAs of ₹1,542.10 crore during the year, the Reserve Bank of India had assessed it at ₹1,812.80 crore. Meanwhile, net NPA divergence was ₹203.02 crore, with the bank reporting it at ₹ 576.47 crore and the RBI assessing it at ₹779.49 crore
Total income of the bank rose to ₹2,374.34 crore in the fourth quarter, registering a 4.1 per cent increase. Interest income, however, fell sharply by 84 per cent to 3.44 crore in the fourth quarter from ₹21.91 crore a year ago.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.