IDFC Bank Q1 net soars 60.4%

By: | Published: July 27, 2016 6:12 AM

Private sector lender IDFC Bank on Tuesday said its net profit for the June quarter rose 60.4% to Rs 264.8, compared with Rs 165.06 crore in the previous quarter.

IDFC Bank sharesThe increase in profit was because of a 54.6% jump in non-interest income and a 25.2% rise in net interest income – the difference between interest earned and interest expended. (PTI)

Private sector lender IDFC Bank on Tuesday said its net profit for the June quarter rose 60.4% to Rs 264.8, compared with Rs 165.06 crore in the previous quarter.

The increase in profit was because of a 54.6% jump in non-interest income and a 25.2% rise in net interest income – the difference between interest earned and interest expended.

The bank said while its net interest margin (NIM) expanded by 30 bps to 2.4% during the quarter, its operating expenses fell by 6.4% to Rs 276.8 crore.

The big jump in IDFC Bank’s non-interest income was led by a 60.4% increase in trading gains to Rs 117.1 crore, while fees and commissions grew 40% to Rs 76.7 crore.

The bank said its loan book grew by 7.3% and stood at Rs 57,470 crore at the end of the quarter. Current account and savings account (CASA) deposits increased by 95.3% to Rs 869 crore.

Born out of the de-merger of IDFC, IDFC Bank has been striving hard to emerge as a mass retail bank. As part of such efforts, it had earlier this month signed a share purchase agreement to fully acquire the Tiruchirappali-based microfinance company Grama Vidiyal Micro Finance (GVMFL) in an all-cash deal. Post completion of the acquisition, GVMFL will become a wholly owned subsidiary of IDFC Bank and act as one of its dedicated business correspondents. The acquisition will also see all loan assets of GVMFL transferred to IDFC Bank.

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