IDFC First Bank on Saturday reported a 266 per cent jump in its net profit at Rs 556 crore for the quarter ended September 2022 on the back of strong growth in core operating income.
The private sector lender had posted a net profit of Rs 152 crore in the same quarter a year ago.
Its core operating income (excluding trading gains) rose by 35 per cent from a year ago to Rs 3,947 crore in Q2 of 2022-23 fiscal year, it said in a regulatory filing.
Net interest income climbed 32 per cent at Rs 3,002 crore, while fee and other income spurted by 44 per cent to Rs 945 crore in the September quarter of FY23.
Total income in the three months to September rose to Rs 6,531.03 crore as against Rs 4880.29 crore in the same period of 2021-22.
Asset quality was better with gross non-performing assets (NPA) coming down to 3.18 per cent of the gross advances as of end-September 2022 from 4.27 per cent a year ago.
Net NPAs were also down at 1.09 per cent as against 2.19 per cent.
The bank said its provisioning for the quarter came down by 11 per cent from a year ago to Rs 424 crore.
"The bank continues to improve on asset quality on overall basis. The NPA levels in the retail and commercial segment have improved and are around the long-term guidance provided earlier of GNPA 2 per cent and NNPA of less than 1 per cent," it said.
About one infrastructure loan account, Mumbai Toll Road, which become NPA in the first quarter of this fiscal, it said the company continued to pay its dues partially and the principal outstanding reduced by Rs 21 crore during the quarter to Rs 760 crore as on September 30, 2022.
"While the account is NPA as of now, we expect to collect our dues and expect eventual losses on this account to be not material in due course."
V Vaidyanathan, Managing Director and CEO, IDFC First Bank, said, "Our profit after tax has grown consistently for the fifth consecutive quarter, reflecting the resilience of our franchise."
He said the bank is confident of sustaining this trend as its new lines of businesses such as cash management, wealth management, FASTag, credit cards have immense potential going forward.
"On the asset quality front, we have a long track record of 12 years of maintaining our retail gross NPA and net NPA at around 2 per cent and 1 per cent respectively through the economic slowdown in 2010-2014...
"Going forward, we are optimistic about maintaining our growth momentum on the basis of strong foundations we have built at the Bank," Vaidyanathan said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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