IDFC First Bank reports q3 net loss

IDFC First bank on Wednesday reported loss of ₹1639 crore at the end of December quarter on account of higher provisioning towards stressed telecom account. The bank had reported a lost of ₹2504 crore during the same period last year.

"The Bank has a legacy exposure of Rs. 3,244 crores to this identified telecom company as of 31st December 2019, of which Rs. 2,000 crores is in the form of non-convertible debentures and Rs. 1,244 crores is in the form of non-funded exposure (Bank Guarantees) for spectrum.

There has been no payment default so far from this telecom company. However, considering the financial stress in the telecom companies related to payments due to the government, the bank has taken provisioning of 50% of total exposure towards this identified telecom company which is in financial stress, during the quarter ended on December 31,2019," said the bank in its press release.

The bank"s net interest income grew 34% year on year to ₹1534 crore, up from ₹1145 crore during the same period last year. Net interest margins improved to 3.86% at the end of December quarter from 2.89% during the same period last year..

Gross non performing assets as a percentage of total assets stood at 2.83% at the end of December 2019 compared to 2.62% during the same period last year.

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IDFC First Bank net loss widens in Q2FY20

IDFC First Bank reported a loss of Rs 680 crore due to taking an one-time impact on deferred tax asset markdown as against Rs 617 crore in the quarter ago period. The profit before tax came at Rs 100 crore, as against a loss of Rs 583 crore in the year-ago period. "The key aspects this quarter are maiden profitability and strong growth in retail deposits and CASA addition of Rs 6,000 crore," its managing director and chief executive V Vaidyanathan said.

The bank, which has been formed with the merger of infra-focused IDFC Bank and the non-bank lender Capital First in January 2019, reduced its loan book by over Rs 5,000 crore to focus only on retail loans during the quarter, which now constitute 45 per cent of the book.

While the overall loan book has gone down, it is a more profitable growth as the retail loans are more profitable and has grown by Rs 3,400 crore last quarter, Vaidyanathan said.

As the bank has not been able to deploy the money, it has kept the liquidity coverage ratio at an elevated levels of 125 per cent as against the mandated 100 per cent, he said. On asset quality, the gross non-performing assets now form 2.62 per cent of the loans, while the provisions for bad loans went up to Rs 1,294 crore from Rs 1,203 crore in June. From a stress perspective, the bank said it has two identified accounts to a non-bank lender and a housing finance company with an aggregate exposure of Rs 1,231 crore, on which it is carrying a 75 per cent provision.

It also flagged one account in the infra space of Rs 985 crore where it is carrying provisions of only 15 per cent, wherein the cashflows are strong but repayments are behind schedule. The core net interest income stood at Rs 1,363 crore, which was up 11 per cent as compared to the preceding June quarter, helped by a margin expansion to 3.43 per cent.

The cost to income ratio for the bank came down to 75.61 per cent from the 78.60 per cent three months ago. 

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IDFC First Bank posts net loss in Q1FY20

Private sector lender IDFC First Bank reported a net loss of ₹617.35 crore in the quarter ended June 30, 2019 as against a net profit of ₹181 crore a year ago.

“This was primarily due to additional provisioning for two identified stressed Corporate Loans to a Housing Finance Company and a Financial Services company (recently downgraded by credit rating agencies), taking the provision coverage on these accounts to 75 per cent,” the lender said in a release late on Wednesday evening, adding that the provisions on these accounts is adequate and it does not expect to take any more provisions on this account in the near future.

Provisioning during the first quarter of 2019-20 increased to ₹1,280 crore, as against ₹33.99 crore made in the June quarter of the last fiscal. Its gross non-performing assets stood at 2.66 per cent of gross advances as on June 30, 2019 as compared to 3.24 per cent a year ago while net NPAs were 1.35 per cent at the end of the first quarter this fiscal from 1.63 per cent a year ago.

The bank said that the asset quality in the retail loan business remains stable and the rest of the portfolio continues to perform normally, with no major concerns being witnessed in the rest of the loan book.

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IDFC First Bank posts loss in Q4FY19

IDFC First Bank Friday reported a loss of Rs 218.03 crore for the quarter ended March 2019 against a profit of Rs 41.93 crore in the corresponding period of the last fiscal on account of higher provisioning.

On an annual basis, it reported a loss of Rs 1,944.17 crore as against a profit of Rs 859.3 crore during 2017-18, the bank said in a stock exchange filing.

The bank's gross NPAs stood at 2.43 per cent of the gross advances during the January-March quarter of 2018-19, down from 3.31 per cent in the corresponding period of the last fiscal.

The bank made a provision of Rs 698.2 crore in the fourth quarter of 2018-19, up from Rs 242.45 crore in the corresponding year-ago period.

Its total income stood at Rs 3,944.99 in the quarter ended March 2019 as against Rs 2,374.34 crore earlier.

During the year ended March 31, 2019, the bank received income tax orders relating to a matter under appeal resulting in write-back of tax provision for earlier years of Rs 89.01 crore.

During the year ended March 31, 2018, it had received favourable income tax orders relating to a matter under scrutiny by tax department, which has resulted in write-back of tax provision for earlier years of Rs 62.57 crore and it has remeasured the deferred tax assets at applicable tax rates, which resulted in tax credit of Rs 77.43 crore, the bank said.

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IDFC First Bank posts big loss in Q3FY19

Private sector lender IDFC First Bank Tuesday reported a net loss of Rs 1,538 crore during the December 2018 quarter, due to one-time exceptional charge to its profit and loss account (P&L) for amalgamating Capital First with itself. 

The bank had registered a net profit of Rs 146.11 crore in the corresponding quarter of previous fiscal. 

Sequentially, there was a net loss of Rs 369.69 crore in the second quarter ended September of the current fiscal. 

Total income of IDFC First Bank, previously IDFC Bank, rose to Rs 3,968.40 crore in December quarter of 2018-19, compared with Rs 2,514.51 crore in the corresponding period of 2017-18, it said in a regulatory filing.

Also read- Q3FY19 Results of all Public & Private Sector banks in India 

Under Section 15 of the Banking Regulation Act 1949, banks are restricted from declaring dividend in the event a bank carries intangible assets such as goodwill on its balance sheet, IDFC First Bank said. 

"Therefore, as a prudent measure, intangible assets acquired or arising on amalgamation have been fully amortised through profit and loss account in the quarter and nine months ended December 31, 2018. 

"This accelerated amortisation charge to profit and loss account for the quarter and nine months ended December 31, 2018 of Rs 2,599.35 crore is exceptional in nature and resulted in loss for the quarter ended December 31, 2018," the bank said. 

On the asset front, there was a reduction in bad assets with gross non-performing assets (NPAs) coming down to 1.97 per cent of the gross advances as at the end of December 2018, from 5.62 per cent as against a year ago. In value terms, gross NPAs were Rs 1,670.85 crore, down from Rs 2,776.67 crore. 

Net NPAs were 0.95 per cent (Rs 796.02 crore), against 2.52 per cent (Rs 1,206.28 crore). 

The bank said merger of Capital First and its wholly owned subsidiaries, Capital First Home Finance and Capital First Securities, with IDFC Bank has been approved by the Reserve Bank of India, the Competition Commission of India, the Securities and Exchange Board of India, stock exchanges, the respective shareholders and creditors of each entities. 

The name of IDFC Bank changed to IDFC First Bank with effect from January 12. 

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