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Saturday, October 28, 2023

IDFC First Bank Q2 results: Net profit up 35% at ₹751 crore, NII jumps 32% -Livemint Oct 28,2023

 


IDFC First Bank recorded a net profit of 751.3 crore in the second quarter of fiscal year 2023-24 (Q2FY24), which is up by 35 percent from 556 crore in the year-ago period, as per the standalone results declared by the lender on October 28.

The private sector bank's net interest income (NII) during the quarter under review came in at 3,950.2 crore, rising by 31.6 percent from 3,002.2 crore reported in the corresponding period of the previous fiscal.

The gross non-performing assets (NPA) at the end of September 2023 quarter stood at 3,747.8 crore, as compared to 3,603.4 crore at the end of the preceding quarter. The gross GNP ratio improved to 2.11 percent from 2.17 percent in the April-June period.

The net NPA at the end of Q2FY24 stood at 1,192.5 crore, as against 1,140 crore in the previous quarter. The ratio improved marginally to 0.68 percent during the second quarter from 0.70 percent in the first quarter of this fiscal.

The core operating profit, which is the pre-provision operating profit excluding trading gains, came in at 1,456 crore in the September 2023 quarter, rising by 38 percent from 1,052 crore in the year-ago period, a press release noted.

The lender's core operating income – NII plus fees and excluding trading gains –  grew 35 percent on-year to 5,326 crore in Q2FY24, it added.

Customer deposits increased by 44 percent on-year to 1.65 lakh crore as of September 30, 2023, the bank said. The current account savings account (CASA) deposits during the second quarter grew by 26 percent on-year to 79,468 crore, it added, while noting that the CASA ratio stood at 46.4 percent.

The bank noted that retail deposits grew by 50 percent on-year to 1.28 lakh crore, further adding that “retail deposits constituted 77 percent of total customer deposits as of September 30, 2023".

“Diversified customer deposits are the most important foundational capability for a bank," V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said as he pointed towards the growth in customer deposits and improvement in CASA ratio.

“We are firmly fixated on building our Bank for the ‘long-run’ and are building our fundamentals, our culture and our products keeping long run thinking in mind," Vaidyanathan added.

In the last trading session on October 27, IDFC First Bank's scrip settled at 86.09 on the BSE, up 1.34 percent from the previous day's close.




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