IDFC FIRST Reports Highest-ever Profit at ₹474cr in June Qtr

Private lender on Saturday reported its highest-ever quarterly net profit of ₹474 crore in the three months to June on the back of a steep fall in provisions. The lender had reported a loss of ₹630 crore in the same period last year.

Net interest income, or the core income of the bank, expanded 26% to reach ₹2,751 crore. Net interest margin improved to 5.89% against 5.5% a year ago.

Fee and other income doubled over last year to reach ₹899 crore.

"We have built a strong foundation for the bank, on the basis of which we can grow the loan book, deposits and profits comfortably from here on in a steady manner," said V Vaidyanathan, MD, IDFC FIRST Bank. "We have seen a steady growth of over 20% year on year, both on the lending side as well as the deposit side. Our ex-treasury core operating profit has grown by 64% to touch nearly ₹1,000 crore, which is a key landmark for us. We have posted the highest- ever profit after tax of ₹474 crore in Q1-FY23. Our return on assets has nearly touched 1% and we expect it to rise from here."

The bank reported an improvement in its asset quality parameters with gross NPAs falling to 3.36% in the June quarter versus 4.61% a year ago. The net NPA came to 1.30% Provisions for the quarter were at ₹308 crore against ₹1,872 crore in the period last year, a reduction of 84%. The credit cost was 0.9%.