IDFC First Bank Q1 PAT up 61%, asset quality improves

IDFC First Bank posted a net profit of ₹765 crore for Q1 FY24, up 61 per cent y-o-y, driven by strong growth in core operating income of 39 per cent to ₹5,086 crore.

Net Interest Income (NII) grew 36 per cent y-o-y to ₹3,745 crore. Net interest margin for the quarter was 6.33 per cent against 6.41 per cent a quarter ago and 5.77 per cent a year ago.

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Funded assets, including advances and credit substitutes, rose 25 per cent y-o-y to ₹1.7 lakh crore. Exposure to top 20 single borrowers fell to 7 per cent from 9 per cent a year ago.

The bank continued to wind down its infrastructure financing book to 2.2 per cent of total funded assets as of June 30.

Gross NPA improves

Gross NPA ratio of the bank improved to 2.17 per cent from 2.51 per cent a quarter ago and 3.36 per cent a year ago. Net NPA ratio at 0.70 per cent was also better than 0.86 per cent in the previous quarter and 1.30 per cent in the previous year. “On the retail, rural and SME business, where our bank particularly specialises in, the gross NPA has come down to as low as 1.53 per cent and the net NPA has come down to 0.52 per cent,” said MD and CEO V Vaidyanathan.

Standard restructured book stood at 0.47 per cent as against 0.59 per cent a quarter ago and 1.27 per cent a year ago.

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Deposits increased 44 per cent y-o-y to ₹1.5 lakh crore. CASA deposits grew 27 per cent to ₹71,765 crore. The CASA ratio fell to 46.5 per cent from 50 per cent a year ago owing to shift from savings accounts to term deposits due to prevailing interest rates, the bank said.

Retail deposits were up 51 per cent at ₹1.1 lakh crore, accounting for 77 per cent of total deposits as of June 30.

Capital adequacy ratio of the bank was 16.96 per cent, of which CET-1 ratio was 13.70 per cent.