The net profit of IDFC First Bank rose 35% year-on-year in July-September due to a rise in net interest income.
The bank posted a bottomline of Rs 751 crore in the quarter under review, down nearly 2% on a sequential basis.
The bank’s provisions rose to Rs 528 crore in the September quarter from Rs 476 crore a quarter ago and this dragged the bottomline lower.
Net interest income, difference between interest earned and interest expended rose 32% to Rs 3,950 crore in the quarter under review.
Fund assets rose 26% to Rs 1.8 trillion as on September 30.
The bank continues to wind down infrastructure financing according to its strategy. The infrastructure finance segment now constitutes a mere 1.8% of total funded assets as of September 30.
Fee and other income rose 46% to Rs 1,376 crore in the quarter under review. Retail fees constitute 93% of the overall fees.
Customer deposits rose 44% to Rs 1.6 trillion as on September 30. Low cost current account savings account (CASA) deposits grew 26% to Rs 79,468 crore.
CASA ratio fell to 46.4% as on September 30 from 51.3% a year ago.
Retail deposits grew 50% to Rs 1.3 trillion as on September 30. Retail deposits constitute 77% of total customer deposits as of September 30.
Legacy high cost borrowings fell to Rs 15,002 crore as on September 30 from Rs 20,449 crore a year ago. Net interest Margin rose to 6.32% in the September quarter from 5.83% a year ago.
Gross non-performing asset ratio (NPA) fell to 2.11% as on September 30 from 3.18% a year ago. Net NPA ratio fell to 0.68% as on September 30 from 1.09% a year ago.
Excluding the infrastructure financing book which the Bank is running down, the gross NPA ratio and net NPA ratio would have been 1.69% and 0.46% respectively as of September 30.
Gross NPA of the retail, rural and small and medium-sized enterprise segment fell to 1.53% as September 30 from 2.03% a year ago.
Provisions rose 25% y-o-y to Rs 528 crore. The credit cost (quarterly annualized) as % of average funded assets for the quarter under review was 1.19%.
Annualised return on assets rose to 1.16% in the quarter under review from 1.07% a year ago.
Capital adequacy ratio of the bank was at 16.54% as on September 30.
“As mentioned before, we are firmly fixated on building our Bank for the long-run and are building our fundamentals, our culture and our products keeping long run thinking in mind,” says Managing Director and Chief Executive Officer V Vaidyanathan.