IDFC First Bank Q2 Results: Posts 35% YoY Growth In PAT To Rs 751 Crore, NII Up 32%

Mumbai-headquartered, IDFC First Bank posted a net profit of Rs 751 crore in the quarter ending September 30, 2023, period, registering a growth of a whopping 35% from Rs 556 crore in Q2 of the previous fiscal. Although the lender's provisions picked up in the quarter, its asset quality continued to improve. NII saw robust growth as well.

Net interest income (NII) also jumped by 32% to Rs 3,950 crore in Q2FY24, as against Rs 3,002 crore a year ago same quarter. Net interest income is the difference between interest earned and expended.

Furthermore, net interest margin (NIM) of the bank stood at 6.32% in Q2-FY24 as compared to 5.83% in Q2-FY23 and 6.33% in Q1-FY24.

Provisions in the quarter under review stood at Rs 528 crore, increasing by 25% from Rs 424 crore in Q2-FY23. The credit cost (quarterly annualized) as % of average funded assets for Q2-FY24 was 1.19%.

In terms of asset quality, gross NPA stood at 2.11% as of 30 September 2023 from 3.18% on 30 September 2022. While Net NPA (NNPA) of the bank has improved to 0.68% as of 30 September 2023 from 1.09% on 30 September 2022.

V Vaidyanathan, Managing Director and CEO, of IDFC FIRST Bank, said, "We are happy that our asset quality continued to improve. In the Retail, Rural & SME business, where our Bank particularly specializes, the Gross NPA and Net NPA have remained very low at 1.53% and 0.52% respectively. We will stay very watchful on this front all the time."

He added, "We have registered a profit of Rs. 1,516 crore in H1-FY24, representing a growth of 47% over PAT of Rs. 1,030 crore in H1-FY23."

Other key highlights of the quarter are:

- Customer Deposits increased by 44% YoY from Rs. 1,14,004 crore as of September 30, 2022, to Rs. 1,64,726 crore as of September 30, 2023.

- CASA Deposits grew by 26% YoY from Rs. 63,305 crore as of September 30, 2022, to Rs. 79,468 crore as of September 30, 2023. CASA Ratio stood at 46.4% as of September 30, 2023.

- Retail deposits constitute 77% of total customer deposits as of September 30, 2023.

- Funded assets (including advances & credit substitutes) increased by 26% YoY from Rs. 1,45,362 crore as of 30 September 2022 to Rs. 1,83,236 crore as of September 30, 2023.

- The Bank continues to wind down infrastructure financing as per the stated strategy and now constitutes only 1.8% of total funded assets as of September 30, 2023.

- Exposure to top 20 single borrowers improved from 8% as of September 30, 2022, to 6% as of September 30, 2023.

- Capital Adequacy of the Bank was strong at 16.54% with a CET-1 Ratio of 13.49% as of September 30, 2023.

- The average LCR was strong at 122% for the quarter ending on September 30, 2023.

IDFC FIRST Bank's vision is to build a world-class bank in India that's guided by ethics, powered by technology, and a force for social good. IDFC FIRST is a new-age bank that works in the best interest of its customers.

Ahead of Q2 results, IDFC First Bank's share price ended at Rs 86.09 apiece, up by 1.34% on BSE after market hours of Friday.