IDFC Bank on Tuesday reported a net profit of Rs 165.1 crore in Q4FY16, which was 31.8% lower than that in Q3FY16 as other operating expenses more than doubled to Rs 90.5 crore.
The bank’s profits were also impacted by a 31.2% drop in non-interest income.
More importantly, the bank, which was born out of the demerger of IDFC and started operations only last October, saw a big deterioration in asset quality as fresh slippages of more than Rs 1,596 crore saw gross non performing assets rising by 310 bps (q-o-q) to 6.2%.
The bank also revealed that its loan book grew by 15% (q-o-q) to Rs 53,580 crore, with total deposits at the end of the quarter at Rs 8,219 crore, 5.4% of which was accounted for by CASA deposits.
On the brighter side, the bank’s capital adequacy ratio improved to 22.04% (21.5% tier I) in Q4 as compared to 20.3% in Q3FY16.