IDFC FIRST Bank net profit decline 58% YoY

IDFC First Bank recorded a net profit for Q4 FY25 of Rs 304 crore, which was 58 percent less than the Rs 724 crore profit for Q4 FY24. The microfinance portfolio's increased provisions associated with stress were the main cause of the decline in profitability. Net profit for the entire fiscal year FY25 was Rs 1,525 crore, a 48.4% decrease from the previous year.

Retail deposits increased by 26.4 percent to Rs 1,91,268 crore, while customer deposits gained a strong 25.2 percent to Rs 2,42,543 crore. At Rs 1,18,237 crore, CASA deposits also showed a robust 24.8 percent year-over-year rise. At 46.9 percent, the CASA ratio held steady and was just slightly lower than 47.2 percent a year earlier.

At Rs 2,41,926 crore, the bank's total loans and advances increased by 20.4% year over year. While the microfinance portfolio shrank by 28.3%, retail, rural, and MSME loans increased 18.6% to Rs 1,97,568 crore.

 

In Q4 of FY25, Net Interest Income (NII) increased 9.8% year over year to Rs 4,907 crore. NII grew 17.3% year over year for the entire year. Due in significant part to the microfinance industry's collapse, the Net Interest Margin (NIM) on AUM decreased 9 basis points sequentially to 5.95 percent in Q4 FY25. The NIM for the entire year was 6.09 percent.

In Q4 of FY25, Fee and Other Income increased by 5.7% year over year to Rs 1,702 crore. The growth in Fee and Other Income for FY25 was 15.2 percent. In Q4, operating expenses increased by 12.2 percent to Rs 4,991 crore, while core operating income increased by 8.7 percent to Rs 6,609 crore. During the quarter, core operating profit was Rs 1,618 crore; for the entire year, it increased 17.2 percent to Rs 7,069 crore. 

Despite sectoral constraints, asset quality metrics stayed consistent. Net non-performing assets (NPA) climbed by 1 basis point to 0.53 percent, while gross non-performing assets (GNPA) improved by 7 basis points sequentially to 1.87 percent. With the microfinance portfolio excluded, the retail, rural, and MSME book's gross non-performing assets (NPA) increased to 1.40%.

At 72.3%, the Provision Coverage Ratio (PCR) was in good health.  For FY25, the total provisions were Rs 5,515 crore, or 2.46 percent of the loan book.  The adjusted credit cost for the year, excluding microfinance and one toll account, was 1.76 percent; in Q4, it improved 9 basis points from the previous quarter to 1.73 percent. In Q4 of FY25, the bank's gross slippages were Rs 2,175 crore, somewhat less than the Rs 2,192 crore in Q3.

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IDFC First Bank Q2 Net profit declines 73%

IDFC First Bank announced its July-September quarter results for fiscal 2024-25 (Q2FY25) on Saturday, October 26, reporting a decline of 73.3 per cent in net profit to ₹200.7 crore, compared to ₹751.3 crore in the corresponding period last year. The private sector bank was formed by merging the banking arm of project financer Infrastructure Development Finance Company (IDFC) and Capital First.

The bank said its net profit was impacted by prudent provisions of ₹568 crore, including Rs. 315 crore in the microfinance institution or MFI business (due to stress in the MFI industry) and ₹253 crore in one Maharashtra-based toll account (recent waiver of toll fees at Mumbai entry points).

IDFC First Bank's net interest income (NII)—the difference between interest earned and paid—rose 21 per cent to ₹4,788 crore compared to ₹3,950 crore in the year-ago period. The bank's core operating profit (excluding trading gain) grew by 28 per cent year-on-year (YOY) from Rs. 1,456 crore in Q2 FY24 to Rs. 1,857 crore in the year-ago period.

Including trading gains, core operating profit increased by 30 per cent year over year. Asset quality improved, as gross non-performing assets (NPA) were 1.92 per cent as of September 30, 2024, against 2.11 per cent as of September 30, 2023. The net NPA or bad loans was 0.48 per cent as of September 30, 2024, against 0.68 per cent as of September 30, 2023.

Provisions for Q2 FY25 stood at ₹1,732 crore, primarily because of a prudent provisioning buffer of ₹568 crore created for MFI business ( ₹315 crore). Operating income grew 21 per cent from Rs. 5,380 crore in Q2 FY24 to Rs. 6,515 crore in Q2 FY25. Operating expenses grew by 18 per cent YoY from Rs. 3,870 crore in Q2 FY24 to Rs. 4,553 crore in Q2 FY25.

Customer deposits increased by 32.4 per cent YoY from Rs. 1,64,726 crore as of September 30, 2023, to ₹2,18,026 crore as of September 30, 2024. Retail deposits grew by 37.4 per cent YoY to Rs. 1,75,300 crore from Rs. 1,27,595 crore in the year-ago period. CASA deposits grew by 37.5 per cent from Rs. 79,468 crore as of September 30, 2023 to Rs. 1,09,292 crore.

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IDFC First Bank Q4 results: Net profit falls 10%

IDFC FIRST Bank on Saturday reported 10 per cent decline in net profit at Rs 724 crore for the fourth quarter ended March 2024 due to substantial jump in provisions.

The lender had earned a net profit of Rs 803 crore in the year-ago period.

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Total income rose to Rs 9,861 crore from Rs 7,822 crore a year ago, IDFC FIRST Bank said in a regulatory filing. Interest income grew to Rs 8,219 crore during the period under review, from Rs 6,424 crore in the corresponding quarter a year ago.Net Interest Income (NII) grew 24 per cent from Rs 3,597 crore in Q4FY23 to Rs 4,469 crore in Q4FY24, it said.

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On the asset quality side, the bank's gross Non-Performing Assets (NPAs) reduced to 1.88 per cent of gross advances as of March 31, 2024, from 2.51 per cent by the end of March 2023.Net NPAs also came down to 0.60 per cent of the advances from 0.86 per cent at the end of 2024.

However, provisions and contingencies increased by 50 per cent to Rs 722 crore in Q4FY24 as compared with Rs 482 crore a year ago.The bank did not declare any dividend for FY24 and FY23.

The capital adequacy ratio of the bank declined to 16.11 per cent from 16.82 per cent at the end of previous fiscal.

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IDFC FIRST Bank reports highest-ever profit in FY23

IDFC FIRST Bank has announced its audited financial results for the quarter and financial year that ended on March 31, 2023. During the financial year, the bank recorded a net profit of Rs. 2,437 crore, as compared to Rs. 145 crore in the previous year. The bank's quarterly net profit grew 134 per cent YoY, from Rs. 343 crore in Q4-FY22 to Rs. 803 crore in Q4-FY23. The strong growth in core operating income was the major driving force behind this increase.

“We have registered our highest ever quarterly profit of Rs. 803 crores in Q4 FY 23 and highest ever yearly profit of Rs. 2,437 crores in FY23,” Managing Director and CEO V Vaidyanathan said.

The bank had trading gains of Rs. 216 crore in Q4-FY23, and it utilized Rs. 79 crore to increase the provision coverage ratio. The net profit of the bank would have been Rs. 701 crore for Q4-FY23, if adjusted for these one-time items. The Core ROE on this basis would have been 12.3 per cent, which increased from 6.67 per cent for Q4-FY22.

The net interest income (NII) for the year grew 30 per cent YoY, from Rs. 9,706 crore in FY22 to Rs. 12,635 crore in FY23. The fee and other income for the year grew by 54 per cent YoY, from Rs. 2,691 crore in FY22 to Rs. 4,142 crore in FY23. Retail fees constituted 91 per cent of the overall fees for the quarter Q4-FY23.

The provisions for the year decreased by 46 per cent YoY, from Rs. 3,109 crore in FY22 to Rs. 1,665 crore in FY23. Credit cost for FY23 was 1.16 per cent against the guidance of 1.5 per cent. The bank's ROA improved from 0.08 per cent in FY22 to 1.13 per cent in FY23, while ROE for FY23 improved to 10.95 per cent from 0.75 per cent in FY22.

On the retail side, the Gross NPA is 1.65 per cent and the net NPA is at 0.55 per cent, against the guidance of Gross NPA of 2.0 per cent and NNPA of less than 1 per cent. Vaidyanathan stated that the asset quality remains high. If the infrastructure financing book, which is already in run-down mode, is excluded, the Gross NPA and Net NPA would be 1.84 per cent and 0.46 per cent, respectively, at the overall bank level.

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IDFC First Bank Q1 Result | Profit at Rs 474.33 crore

 

IDFC First Bank on July 30 announced its highest-ever standalone profit of Rs 474.33 crore for the quarter ended June 2022, against a loss of Rs 630 crore in corresponding period of the previous fiscal. The increase in core operating income and fall in provisions aided the profitability, with the sequential growth in profit at 38 percent.

Net interest income, the difference between interest earned and interest expended, grew by 26 percent to Rs 2,751.1 crore for the June FY23 quarter, against Rs 2,184.8 crore recorded in year-ago period, with 39 bps YoY improvement in net interest margin at 5.89 percent for the quarter, the bank said in its BSE filing. But there was 38 bps decline in net interest margin on a sequential basis.

"We have seen a steady growth of over 20 percent YoY, both on the lending side as well as the deposits side in Q1FY23. Our return on assets has nearly touched 1 percent and we expect it to rise from here," said V Vaidyanathan, Managing Director and CEO.

The bank reported provisions and contingencies for the quarter at Rs 308 crore, declining 83.55 percent year-on-year and the sequential fall in the same was 16.6 percent.

IDFC First Bank said it is well on track to meet the asset quality and credit cost guidance. Based on the improved portfolio performance indicators, the bank is confident to achieve its credit cost guidance for FY23 at around 1.5 percent on funded assets.

On the asset quality front, gross non-performing assets as a percentage of gross advances improved to 3.36 percent, down by 34 bps sequentially and net NPAs declined to 1.3 percent in Q1FY23, from 1.53 percent in Q4FY22.

Excluding legacy infrastructure loans (which will be run down in due course), the gross and net NPA would have been 2.39 percent and 0.80 percent respectively, said the bank, adding the overall restructured book reduced to 1.3 percent as on June 2022 of the funded assets, as against 1.8 percent as on March 2022.

Other income (non-interest income) increased by 1.56 percent YoY to Rs 855.67 crore for the quarter ended June 2022.

The bank said it had treasury loss of Rs 44 crore in Q1FY23 on account of increase in market yields. The bank conservatively manages its treasury positions as a result of which the treasury losses were minimal despite sharp increase in bond yields during the quarter.

Pre-provision operating profit fell by 5.13 percent YoY to Rs 943.82 crore during the quarter as operating expenses grew by 31 percent to Rs 2,663 crore during the same period.

Core operating profit (excluding trading gains) rose by 64 percent YoY to Rs 987 crore for the quarter Q1FY23, and sequentially, it grew by 18 percent, IDFC First Bank said.

The bank further said core operating income (NII + fee and other income excluding trading gains) increased by 39 percent YoY to Rs 3,650 crore in June FY23 quarter aided by strong NII and fee income growth. Sequentially, the growth was 4 percent.

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IDFC First Bank posts Q1 loss on higher Covid provisioning

Private lender IDFC First Bank on Saturday reported a net loss of Rs 630 crore in the April-June quarter due to provisioning measures for cushioning the impact of the second wave of the Covid-19 pandemic.The bank had posted a net profit of Rs 93.55 crore in the year-ago quarter ended in June 2020 and that of Rs 127.81 crore in the previous quarter ended in March 2021.

"Net loss of Rs 630 crore for Q1FY22 is because of prudent provisions for Covid wave 2.0. Covid provision pool increased from Rs 375 crore to Rs 725 crore during the current quarter on a prudent basis to act as a cushion for Covid impact," IDFC First Bank said in a release.The bank expects to collect a reasonable proportion of these dues in due course, it added.

Total income (net of interest expense) grew by 36 per cent year-on-year to Rs 3,034 crore in Q1FY22, driven by the growth in NII and fee income, the bank said. Its total income during Q1FY21 stood at Rs 2,229 crore in June 2020 quarter.

The bank said its net interest margin (NIM) -- the difference of interest earned and expended -- was the highest ever at 5.51 per cent during the reported quarter. The NIM was 4.86 per cent in year ago quarter.The net interest income (NII) rose by 25 per cent year-on-year to Rs 2,185 crore.On the asset front, bank's gross and net non-performing assets (NPAs) were at 4.61 per cent and 2.32 per cent respectively as of June 30, 2021.The NPA ratios were up from 1.99 per cent and 0.51 per cent respectively, from year ago period.

"The GNPA and NNPA include impact of 84 bps (basis points, which is one hundredth of a percentage) and 71 bps respectively on account of one Mumbai based infra toll account which slipped during the quarter. The bank expects no material economic loss in this account eventually as this is an operating toll road and is only delayed."

Bank deposits were up by 36 per cent to Rs 84,893 crore. The retail loan book of the lender increased to Rs 72,766 crore as on June 30, 2021 from Rs 56,043 crore.The year-on-year growth of the retail loan book was 27 per cent excluding Emergency Credit Guarantee Line loan book of Rs 1,645 crore. However, it declined by 1.2 per cent on a sequential basis. The wholesale loan book fell by 15 per cent to Rs 34,232 crore from Rs 40,275 crore.

Capital adequacy ratio stood at 15.56 per cent with CET-1 (common equity tier-1) ratio at 14.86 per cent. Average liquidity coverage ratio (LCR) was at 166 per cent for Q1FY22."Within just two years we have made tremendous progress at the bank. Our CASA (current account savings account) ratio is high at 50.86 per cent despite reducing savings account interest rates by 200 bps recently, which points to the trust customers have in our bank and service levels.

"Because of our low cost CASA, we can now participate in prime home loans business, which is a large business opportunity," V Vaidyanathan, Managing Director and CEO, IDFC First Bank, said. Regarding the loss during the quarter, he said the bank has made prudent provisions for Covid second wave.

"We expect provisions to reduce for the rest of the three quarters in FY22. We guide for achieving pre-Covid level gross and net NPA, with targeted credit loss of only 2 per cent on our retail book by Q4FY 22 and onwards, assuming no further lockdowns," he said further.

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IDFC First Bank Q4 Profit jumps 78%

 

IDFC First Bank on Saturday reported a 78 per cent jump in net profit at Rs 128 crore for the fourth quarter ended March 2021. The private sector lender had posted a profit of Rs 72 crore during the corresponding January-March quarter a year ago.

Total income during the fourth quarter rose to Rs 4,834 crore as against Rs 4,576 crore during the same period of FY20, IDFC First Bank said in a regulatory filing.

On the asset front, the gross non-performing assets (NPAs) or bad loans as a percentage of gross loans as on March 31, 2021, increased to 4.15 per cent from 2.60 per cent by year ago same period.

At the same time, net NPAs too rose to 1.86 per cent as against 0.94 per cent in March 2020.As a result provision (other than tax) and contingencies rose to Rs 603 crore as compared to Rs 412 crore in the same quarter a year ago.

In Q4 FY21, the bank released Rs 324 crores from provisions made for one telecom account based on mark to market value of the instruments and made additional provisions of Rs 375 crore for COVID-19 which is carried forward to the next financial year for the unprecedented situation arising due to COVID-19 second wave in India, it said.

For the full year 2020-21, the bank posted a profit of Rs 452 crore as against loss of Rs 2,864 crore in the previous fiscal.Total income during the year rose to Rs 18,221.5 crore from Rs 18,029.7 crore in the previous year.

"Including the equity capital of Rs 3000 crore raised through QIP on April 6, 2021, our overall capital adequacy is strong at 16.32 per cent. We maintain high levels of liquidity with liquidity coverage ratio of 153 per cent," IDFC First Bank MD V Vaidyanathan said.

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IDFC First Bank posts net profit in Q3 as provisions decline

IDFC First Bank reported a net profit of Rs 130 crore in the quarter ended December 31, 2020, as provisions declined significantly. The bank, which came into existence after the merger of IDFC Bank and Capital First, had posted a loss of Rs 1,639 crore in the corresponding quarter last fiscal. In sequential terms, the lender had reported a profit of Rs 101 crore in the preceding quarter.

Net interest income (NII) grew by 14 per cent year-on-year to Rs 1,744 crore in Q3 FY21 from Rs 1,534 crore in Q3 FY20, as per regulatory filing by the bank. It grew by 5 per cent quarter-on-quarter from Rs 1,660 crore in Q2 FY21. NII for the current quarter includes the impact of provision for interest reversal for proforma NPA cases, the lender informed. Net interest margin (NIM) improved to 4.65 per cent in Q3 FY21 as compared to 3.86 per cent in Q3 FY20 and 4.57 per cent in Q2 FY21.

"The total provisions for Q3 FY21 were Rs 595 crore as compared to Rs 2,305 crore (including provision of Rs 1,622 crore on one telecom exposure) in Q3 FY20 and as compared to Rs 676 crore in Q2 FY21. This includes additional COVID provisions of Rs 390 crore made during the quarter," IDFC First Bank said.

Total income (including trading gain) grew 24 per cent YoY to Rs. 2,616 crore in Q3 FY21 from Rs 2,113 crore in Q3 FY20. It grew by 14 per cent QoQ from Rs 2,288 crore in Q2 FY21. Pre-Provisioning Operating Profit (PPOP), including trading gains worth Rs 290 crore, grew 13 per cent YOY to Rs 773 crore in Q3 FY21 as compared to Rs 682 crore in Q3 FY20 (including trading gains of Rs 142 crore). It de-grew by 4 per cent QoQ from Rs 803 crore in Q2 FY21 (including trading gains of Rs 337 crore).

Current Account and Savings Account (CASA) deposits increased 150 per cent YoY to Rs 40,563 crore as on December 31, 2020, from Rs 16,204 crore as on December 31, 2019. Meanwhile, CASA ratio improved to 48.31 per cent as on December 31, 2020, from 24.06 per cent as on December 31, 2019. Average CASA Ratio also improved to 44.66 per cent as on December 31, 2020, from 20.88 per cent as on December 31, 2019.

IDFC First Bank's gross NPA (GNPA) reduced to 1.33 per cent as of December 31, 2020, from 1.62 per cent as of September 30, 2020. Its net NPA (NNPA) reduced to 0.33 per cent as of December 31, 2020, from 0.43 per cent as of September 30, 2020. Provision Coverage Ratio (PCR) was 75.14 per cent as of December 31, 2020 as compared to 57.34 per cent as of December 31, 2019.

"The above figures include the impact of the Hon. Supreme Court notification to stop NPA classification post August 31, 2020, till further orders. Without this impact, the proforma GNPA as on December 31, 2020 would have been 4.18 per cent and the proforma NNPA would have been 2.04 per cent. As compared to Long Term Average of 4 pre-COVID quarters, the proforma GNPA is higher by 155 bps," the bank said.

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