Leading private lender for infrastructure IDFC, which would soon begin a full-service bank, reported a 47% year-on-year fall in its consolidated net profit for April-June, led by a 40% plunge in non-interest income and a massive jump in operating expenses.
The consolidated net profit of the group also fell 47.23% to Rs 254 crore during the quarter. Non-interest income fell 40.3% to Rs 80 crore for the same period while operating expenses rose 345% to Rs 246 crore. IDFC’s standalone net profit stood at Rs 240.8 crore for April-June, down 46.36% from a year ago and a sequential fall of 30%.
The IDFC scrip fell 1.27% before recovering to end 0.9% lower at Rs 152.80 on the BSE.
On a consolidated basis, total income of the group increased marginally to Rs 2,087.08 crore for the quarter ended June 30, from Rs 2,039.17 crore in the corresponding quarter a year ago, IDFC said in a filing.
Total income of the group rose to Rs 2,226.77 crore during the first quarter from Rs 2,189.15 crore year ago.
Reflecting the woes of the infrastructure sector, the company’s bad assets on a net basis rose to 1% of its loan book as of June end from just 0.2% of its loans in March and 0.4% a year ago. Gross non-performing loans rose to 1.5% of assets from 0.6% a year ago.
Even as bad assets rose, IDFC’s net interest income fell 8% year-on-year to R627 crore on the back of a narrowed net interest margin of 3.2% compared with 4% a year ago.
While its overall gross loan book shrank 1% to Rs 53,359 crore, IDFC’s disbursals grew at a healthy pace of 26% to Rs 3,104 crore. The energy sector continued to be the biggest borrower for IDFC with the company having directed 42% of its total loan disbursals to this sector.