IDFC First Bank today reported a significant 117 percent year-on-year jump in its net profit to Rs 281 crore for the quarter ended December 31, 2021. The bank also reported a 36 percent YoY increase in its Net Interest Income (NII) to Rs 2,580 crore, in its quarterly earnings report.
As per the report, the bank's core operating profit, excluding trading gains, grew 54 percent YoY to reach Rs 745 crore, while its Current Account Savings Account (CASA) balance increased 18 percent YoY to Rs 47,859 crore. The bank's CASA ratio stood at 51.59 percent as against 48.31 percent a year-ago.
The bank reported that its Customer Deposits grew by 11 percent YoY to Rs 85,818 crore, while its Funded Assets increased by a similar margin to touch Rs 1,22,219 crore.
The bank said its gross non-performing assets (NPAs) and net NPAs reduced sequentially by 31 bps and 35 bps to reach 3.96 percent and 1.74 percent, respectively. Gross and net NPAs of Retail and Commercial Finance reduced by 53 bps and 38 bps on a sequential basis, the bank added.
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“The business conditions are normalising. We are seeing strong growth in credit once again; our home loan business has grown by 44 percent year-on-year. For the last three years, we have been laying a strong foundation by building a strong deposit base, increasing CASA margin, dealing with legacy loans, and scaling up core operating profits. Our net interest margin is strong at 5.9 percent. We have now begun to see the benefit of this work in terms of profitability," said V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank.
“The strength of our business model is seen from the fact that, while the loan book has grown by only 17 percent since the merger quarter to December 2021, the core operating profits have grown by over 100 percent during the same period. All our credit indicators show that the credit performance is improving. Based on these analysis, we would like to improve our guidance for credit costs for FY23 to 1.5 percent of the funded assets, absent any lockdowns," he added.
First Published: Jan 29, 2022 6:28 PM IST
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