IDFC Bank on Thursday reported a 65.3% year-on-year increase in the net profit to Rs 437.59 crore for the first quarter of FY18 on the back of a three-fold increase in other income, but its net interest income fell 23.6%.
IDFC Bank on Thursday reported a 65.3% year-on-year increase in the net profit to Rs 437.59 crore for the first quarter of FY18 on the back of a three-fold increase in other income, but its net interest income fell 23.6%. The net interest income (NII), which is the difference between interest earned and interest expended, stood at Rs 388.02 crore, down from Rs 507.88 crore in the year-ago period and Rs 502.08 crore in the previous quarter. NIM fell to 1.7% from 2.4% in the year-ago period. In the March quarter, it was 2%.
Other income was at Rs 648.83 crore during the quarter, up from Rs 212.6 crore in the corresponding period last year and Rs 56.27 crore in the previous quarter. In a conference call, the bank attributed the fall in its NII and NIM to the composition of its assets and liabilities. It said a large part of its assets are low-yielding assets in the infrastructure sector, while a significant portion of its liabilities are long-term bonds that have little scope for refinancing.
Over the next 9-12 months, the downward pressure on its NII and NIM would significantly abate as the composition of the asset book changes, the bank said.
IDFC Q1 net profit too soars 65%
IDFC Ltd on Thursday reported a growth of more than 65.2% in its consolidated net profit at Rs 299.40 crore for the first quarter ended June 30, 2017, reports PTI. The company’s net profit in the corresponding quarter of the previous fiscal stood at Rs 181.21 crore. Total income increased by 29.5% to Rs 3,058.13 crore for the reported quarter, as against Rs 2,360.58 crore in the year-ago period. On a standalone basis, the company reported a decline in the net profit at Rs 1.78 crore.