Private lender IDFC First Bank saw its net profit rise to Rs 93.5 crore at the end of June compared with a loss of Rs 617 crore during the same period last year. At the end of June, the bank had provided moratorium to about 28% of its customers based on the value, out of which 23% is in retail assets including rural portfolio and 35% is in the wholesale financing portfolio.
“We have liberally provided moratorium to customers who sought it, and our moratorium was about 45% last quarter, this has reduced to 28% now, which we expect to fall below 10% by August 31, 2020, based on the strong improving trend in collections we are experiencing,” said V Vaidyanathan, MD, IDFC FIRST Bank.
The provision at the end of the June quarter was at Rs 764 crore as compared to Rs 1,281 crore during last year and as compared to Rs. 679 crore in Q4 FY20. In the first phase of moratorium, the Bank took coronavirus related provision of Rs. 225 crore, during the June quarter the lender created additional coronavirus related provision of Rs. 375 crore to further strengthen the balance sheet.
The gross NPA of the bank reduced to 1.99% for the quarter under review, this was 2.66% same period a year ago. Net NPA stood at 0.51%. Apart from the NPA, the identified stressed asset pool of the bank, reduced by Rs. 943 crore during the last financial year. This stressed pool stood at Rs. 3,195 crore as of 30 June 2020 against which the Bank has done provisioning of Rs. 1,668 crore, 52% of the pool.
The advances book contracted by nearly 7.5% and stood at Rs 1.04 lakh crore versus Rs 1.12 lakh crore same period last year. The bank has focused on growing the retail loan book and decreased the wholesale loan book including infrastructure loans to reduce concentration risk on the portfolio. Out of the total book, retail loans grew by 26% to Rs. 56,043 crore as on June 30, 2020, compared to Rs. 44,642 crore as on June 30, 2019.
.jpeg)
No comments:
Post a Comment