IDFC net down 5.6% at Rs 470 cr

Written by fe Bureau | Mumbai | Updated: Oct 31 2014, 06:04am hrs
State-run infrastructure financing company IDFC on Thursday reported a standalone net profit of R470.15 crore for the quarter ended September 30, down 5.61% y-o-y.

Net interest income of the non-banking finance company was R648 crore, down 6% y-o-y. Total income stood at R2,066.35 crore, down 14.87% y-o-y.

Non-interest income stood at R449 crore compared to R198 crore in the same period last year. As a consequence, net interest margins (NIMs) were at 3.8% for the rolling 12-month period ended September 2014.

IDFC, which won a banking licence in April, said its board approved the necessary procedures for transforming itself into a bank, as per RBI guidelines.

IDFC Bank will issue one equity share of R10 each for every one equity share of Rs 10 each held in IDFC. On completion of the demerger, IDFC Financial Holding Company will hold close to 53% in the equity share capital of IDFC Bank while around 47% will be held by the shareholders of IDFC. During the quarter, IDFC raised R1,000 crore from domestic investors through a qualified institutional placement issue of 7.3 crore equity shares at R137 per share.

Asset quality improved slightly and gross NPAs stood at R342.38 crore, or 0.62% of gross advances, down 2 bps from the preceding quarter. Net NPAs stood at R228.44 crore, or 0.42% of net advances. Provisions at the company, however, increased to R281 crore from R50 crore last year. The gross loan book decreased 2% y-o-y to R55,957 crore. Net restructured loans stood at 6.1% of gross loans at the end of the quarter.