IDFC First Bank’s net profit for Q3 FY24 rose 18 per cent on year to ₹716 crore. Sequentially, the profit after tax was 4.7 per cent lower, largely due to a rise in operating expenses and provisions.

The lender expects profitability to touch ₹12,000-13,000 crore by the end of FY29, with RoA of 1.9-2 per cent and RoE of 17-18 per cent. For Q3 FY24, RoA was 1.2 per cent and RoE was 10.7 per cent.

Net Interest Income (NII) grew 30 per cent y-o-y and 8.5 per cent q-o-q to ₹4,287 crore. Net interest Margin (NIM) for the quarter was 6.42 per cent compared with 6.13 per cent a year ago.

Gross loans and advances were up 24.5 per cent on year and 3.4 per cent on quarter to ₹1.89 lakh crore, led by 29.3 per cent on year growth in retail finance and 47.4 per cent in rural finance.

The bank said rural Finance, CV/CE financing, Business Banking, Gold Loans, and home loans below ₹30 lakh, largely contribute to its PSL requirements and hence are focus areas. Further, it continues to wind down infrastructure financing, which now constitutes 1.6 per cent of total funded assets. Exposure to top 20 single borrowers was at 5.93 per cent.

Deposits increased 37 per cent y-o-y and 7 per cent q-o-q to ₹1.82 lakh crore, led by 46.6 per cent yoy growth in retail deposits to ₹1.4 lakh crore, accounting for 79 per cent of deposits. CASA deposits grew 29 per cent on year and 8 per cent on quarter to ₹85,492 crore, comprising 46.8 per cent of deposits, slightly higher than 46.4 per cent a quarter ago but lower than 50 per cent a year ago.

The private sector lender guided that over the next five years, it is aiming for advances to grow to ₹5 lakh crore and deposits to ₹5.8 lakh crore. Gross NPA ratio is projected at 1.5 per cent and net NPA ratio at 0.4 per cent as of March 2029.

For Q3, gross NPA ratio improved to 2.04 per cent from 2.96 per cent a year ago. Net NPA ratio at 0.68 per cent too was better than 1.03 per cent in the previous year. “On the Retail, Rural & SME business, which is a significant part of our business, the Gross NPA and Net NPA continue to remain low and are at 1.45 per cent and 0.50 per cent, respectively. We will remain very watchful on this front all the time,” said MD and CEO V Vaidyanathan.