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Private sector lender IDFC First Bank witnessed its standalone net profit more than double in the third quarter of the fiscal. The lender reported a 117 per cent jump in its standalone net profit to ₹281.06 crore from ₹129.51 crore in the same period last fiscal. For the quarter ended December 31, 2021, the lender registered a 35.6 per cent rise in net interest income to ₹2,579.96 crore as compared to ₹1,902.3 crore in the same period last fiscal.
Net interest margin
Net interest margin stood at 5.90 per cent excluding interest income pertaining to prior period for one telecom account. Including the same, NIM is at 6.18 per cent for the quarter. NIM was 4.8 per cent in the third quarter of the fiscal and 5.76 per cent in the quarter ended September 30, 2021.
Other income, however, increased by 4.1 per cent to ₹768.63 crore in the October to December 2021 quarter from ₹738.6 crore in the same period last fiscal. Provisions declined by 15. 1 per cent to ₹391.85 crore in the third quarter of the fiscal from ₹461.57 crore a year ago. Asset quality improved on a sequential basis.
NPAs rise
Gross non-performing assets rose to 3.96 per cent of gross advances as on December 31, 2021 compared to 4.27 per cent as on September 30, 2021 and 1.33 per cent as on December 31, 2020. Net NPAs also rose to 0.64 per cent of net advances as on December 31, 2021 versus 0.35 per cent at the end of the second quarter of the fiscal and 0.33 per cent as on December 31, 2020.
Provision coverage ratio increased from 52.06 per cent as at September 30, 2021 to 57.06 per cent at December 31, 2021. “Early bucket collection efficiency in retail surpassed pre-Covid levels for both urban and rural retail loans,” the bank said in a statement on Saturday. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “The business conditions are normalising. We are seeing strong growth in credit once again; our home loan business has grown by 44 per cent year-on-year. All our credit indicators, including cheque bounces, collections, recovery, vintage analysis show that the credit performance is improving.”
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