IDFC FIRST Bank reports 35% yoy increase in Q2 net profit at ₹751 Cr

IDFC FIRST Bank reported a 35 per cent year-on-year (yoy) increase in second quarter standalone net profit at ₹751 crore on the back of healthy growth in net interest income and other income.

The private sector bank had reported a net profit of ₹556 crore in the year ago quarter.

Net interest income (difference between interest earned and interest expended) was up 32 per cent yoy at ₹3,950 crore (₹3,002 crore in the year ago quarter).

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Other income, including fee-based income, treasury income and recovery in written-off accounts, rose 35 per cent yoy to ₹1,430 crore (₹1,061  crore).

Net interest margin (interest income - interest expense/ total assets) rose to 6.32 per cent from 5.83 per cent a year ago.

Gross non-performing assets (GNPAs) position improved to 2.11 per cent of gross advances as at September-end 2023 against 2.17 per cent as at June-end 2023.

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Net NPAs position too improved a shade to 0.68 per cent of net advances against 0.70 per cent. Provisions increased 25 per cent yoy from ₹424 crore in Q2-FY23 to ₹528 crore in Q2-FY24.

Loans & advances increased by 26 per cent yoy to ₹1,83,236 crore as at September-end 2023. Customer Deposits increased by 44 per cent yoy to ₹1,64,726 crore. CASA (current account, savings account) ratio declined to 46.41 per cent of customer deposits against 51.28 per cent in the year ago quarter.

V Vaidyanathan, Managing Director and CEO, said,”On the Retail, Rural & SME business, where our Bank particularly specialises in, the Gross NPA and Net NPA have remained very low at 1.53 per cent and 0.52 per cent respectively. We will stay very watchful on this front all the time.”

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