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.

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