IDFC First Bank has reported a net loss of ₹1,538 crore for the December quarter as the lender recognised the charge for goodwill and other intangibles of ₹2,599 crore following the merger of Capital First with IDFC Bank, in the profit and loss account. In the same period of the previous financial year, the bank made a profit of ₹146 crore but the numbers are not comparable since the merger took place in the October-December quarter.

Following the merger with Capital First, the bank’s gross NPA ratio increased from 1.97% from 1.63% in September and net NPA ratio increased to 0.95% from 0.59%. The provision coverage ratio stood at 72.9% in December.

NPA numbers were not expected to go up significantly, V. Vaidyanathan, managing director & CEO, IDFC First Bank, told the media.

The new management has chalked out a four-to-five-year road map during which it aims to increase net interest margin to 5.5% from the current which is 3.27% now as compared to 1.7% in the pre-merger period.

Following the merger, the retail share of loans to total loans has increased to 35% from 11% and the bank aims to increase the share to 70% in the next four to five years.