IDFC First Bank on Friday reported a net loss of Rs 218 crore for the quarter ended March 2019, owing to higher provisions.
IDFC First Bank on Friday reported a net loss of Rs 218 crore for the quarter ended March 2019, owing to higher provisions. The bank reported a net profit of Rs 42 crore in the same period a year ago.
Total income of the bank grew 66% year-on-year (y-o-y) to Rs 3,945 crore for Q4FY19 from Rs 2,374 crore a year ago.
Net interest income (NII) rose to Rs 1,113 crore for Q4FY19, more than double of Rs 453 crore in the corresponding quarter last year but 2.8% less than Rs 1,145 crore in Q3FY19, which included one-time interest recovery amount of Rs 81 crore from one of the defaulted accounts.
Net interest margin (NIM) rose 145 bps to 3.03% in quarter ending March 31 against 1.58% in the same period last year. NIM was 2.89% in the previous quarter.
Operating profit (profit before provisions) grew to Rs 281 crore from Rs 56 crore in the year-ago period.
Asset quality declines as gross non-performing assets (NPA) and net NPA rose to 2.43% and 1.27%, respectively, from 1.97% and 0.95% in the previous quarter.
Provisions grew three-fold to Rs 698.2 crore from Rs 242 crore in the same period last year. The bank has made a provision of Rs 267 crore against the exposure of Rs 1,784 crore to two large financial services firms as both companies faced credit rating downgrades recently. However, the repayment by these companies has been on schedule.
Total loan book grew 5.5% quarter-on-quarter (q-o-q) to Rs 1.1 lakh crore in Q4FY19 driven by a 13% q-o-q growth in the retail loans to Rs 40,812 crore. Retail loans now contribute to 37% of the total loans.
V Vaidyanathan, MD and CEO, IDFC FIRST Bank, said: “The bank is focused on accelerating the build out of its retail liability franchise, growing the retail assets book, diversifying the balance sheet and improving margins.”
The bank’s total Capital Adequacy Ratio (CAR) as per Basel-III guidelines was at 15.47% as on March 31. The lender reported a net loss of Rs 1,944 crore for FY19, falling from a net profit of Rs 859 crore in 2017-18.