IDFC First Bank Q2: Net Profit Rises 35% YoY

IDFC First Bank Ltd reported a 35% year-on-year rise in the July-September quarter, on higher core income.

Profit after tax for the quarter stood at Rs 751 crore, compared to Rs 556 crore a year ago. Net interest income for the quarter rose 32% year-on-year to Rs 3,950 crore.

Fee and other income grew by 46% from last year to Rs 1,376 crore.

Asset quality for the quarter improved as gross non-performing asset ratio fell 6 basis points quarter-on-quarter to 2.11%. Net NPA ratio fell 2 bps sequentially to 0.68%. Provisions for the quarter rose 24.5% year-on-year to Rs 528.36 crore.

Gross NPA ratio for the loan against property business stood at 2.35%, while that for the consumer loan business was 1.96%. Credit card NPA too stood at 1.87%.

Provision coverage ratio of the bank has increased to 84.09% as of September 30 from 76.49% last year.

Capital adequacy of the bank stood at 16.54% with common equity Tier-1 ratio at 13.49%. During the first week of October, the bank further raised Rs 3,000 crore via qualified institutional placement at an issue price of Rs. 90.25 per share.

Factoring the above capital raise, the total capital adequacy ratio would be 18.06% with CET-1 at 15.01%.

Total advances for the lender rose 26% year-on-year to Rs 1.83 lakh crore. Mortgage backed loans formed 28% of the loan book, while consumer loans constituted 13%. Consumer loans include personal loans and consumer durable loans. The bank's rural finance portfolio was at 11% of total loans and advances toward vehicles formed 10%.

Total customer deposits rose 44% from last year to Rs 1.64 lakh crore. This included low cost current account savings accounts deposits worth Rs 79,468 crore. CASA ratio was flat at 46.4%.