Hyderabad, July 29 : IDFC FIRST Bank on Saturday reported a 61 per cent increase in net profit to Rs 765 crore for the first quarter ended June 30, 2023 as against Rs 474 crore in the corresponding quarter in the previous year.
The profitability during the quarter was driven by strong growth in core operating income, the bank said in a release here.
Core Operating Profit (pre-provision operating profit excluding trading gains) grew strongly by 45 per cent YOY from Rs 987crore in Q1-FY23 to Rs.1,427 crore for the quarter Q1-FY24.
The bank’s net Interest Income (NII) grew 36 per cent YOY from Rs. 2,751 crore in Q1-FY23 to Rs. 3,745 crore in Q1FY24.
Fee and Other Income grew by 49 percent YoY from Rs. 899 crore in Q1-FY23 to Rs. 1,341 crore in Q1FY24.
Retail fees constitute 91 per cent of the overall fees for the quarter Q1-FY24, the bank said.
Operating expenses grew by 37 percent YoY from Rs. 2,663 crore in Q1-FY23 to Rs. 3,659 crore in Q1FY24, primarily on account of employees increments, branch expansion and increase in business volumes.
Provisions increased 55 percent YOY from Rs. 308 crore in Q1FY23 to Rs. 476 crore in Q1FY24.
Customer Deposits increased by 44 per cent YoY to Rs 1,48,474 crore during the quarter as against Rs. 1,02,868 crore Q1FY23 and also retail deposits increased by 51 per cent from Rs 75,800 crores on June 30, 2022 to Rs 1,14,272 crore in Q1FY24.
Retail deposits constitute 77 per cent of total customer deposits as of June 30, 2023.
Legacy High Cost Borrowings reduced during the quarter to Rs 16,055 crore compared to Rs 22,406 crore in corresponding quarter in previous year.
The Bank continues to wind down infrastructure financing as per stated strategy and now constitutes only 2.2 percent of total funded assets as of June 30, 2023.
Exposure to top 20 single borrowers reduced from 9 per cent as of June 30, 2022 to 7 per cent as of June 30, 2023.
The Gross NPA (GNPA) of the bank has improved to 2.7 per cent during the quarter from 3.36 percent in Q1FY23.
Net NPA (NNPA) of the bank has also improved to 0.70 per cent as of June 30, 2023 from 1.30 percent of 30 June 2022.
Excluding the infrastructure financing book which the Bank is running down, the GNPA and NNPA of the Bank would have been 1.71% and 0.44% respectively as of June 30, 2023.
Collection efficiency for urban retail business (excluding prepayments and EMI arrears) in current bucket continues to remain high at 99.5 per cent.
Commenting on the results, Mr. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “We continue to build a strong franchise with a high CASA Ratio of 46.5 per cent. Our retail deposits are growing well, based on our strong positive brand, ethics, customer-friendly products and digital innovations.
We are happy to share that our asset quality continues to remain strong. On the Retail, Rural & SME business, where our Bank particularly specializes in, the Gross NPA has come down to as low as 1.53% and the Net NPA has come down to 0.52%, he said.
During the last four years, we underwent some transformational changes at our Bank. During the period, we got terrific support from all of our shareholders and customers, and we thank you all for the same. We are confident of improving our performance from here on,” he added.
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