IDFC First Bank Q1 Review - Covid-19 Takes Toll On Asset Quality: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

IDFC First Bank Ltd. reported a loss of Rs 6.3 billion (our estimate: profit after tax of Rs 1.2 billion) on back of a much sharper provision Rs 18.8 billion, rise of three times QoQ.

Operating performance was relatively decent on:

1. savings account rate cut in May 2021 and improving retail mix has helped on strong net interest income

2. relatively better opex and

3. treasury leading to pre provision operating profit growth of 12% YoY/55% QoQ.

Slippages of Rs 28.8 billion (annualised 11.5% of loans) were substantially higher, although write off Rs 14.0 billion of loans mainly in retail, prevented sharp deterioration in asset quality.

IDFC First Bank's slippages and provisions should subside as things improve on ground.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.