IDFC First Bank Q1 results: Net profit declines 11%, net interest income up 25% but misses estimate

HomeMarket NewsEarnings NewsIDFC First Bank Q1 results: Net profit declines 11%, net interest income up 25% but misses estimate

IDFC First Bank’s gross non performing assets (NPA) increased on a quarter-on-quarter basis from ₹3,718.4 crore in the March 2024 quarter to ₹3904.2 crore in the quarter under review. Gross NPA ratio increased to 1.90% compared to 1.88% in the preceding quarter.

By CNBCTV18.com July 28, 2024, 12:07:59 AM IST (Published)

IDFC First Bank’s profit declined 11% year-on-year for the April to June 2024 quarter to ₹680.7 crore, missing the CNBC-TV18 poll projection of ₹713.8 crore, the company’s financial results showed on July 27. The lender’s profit in the June ended quarter in FY24 was ₹765.2 crore.

The private sector bank’s net interest income (NII) rose 25% year-on-year to ₹4,694.9 crore, compared to CNBC-TV18 poll estimate of ₹4,708.1 crore. In the corresponding quarter last fiscal, NII came in at ₹3,745.1 crore.

IDFC First Bank’s gross non performing assets (NPA) increased on a quarter-on-quarter basis from ₹3,718.4 crore in the March 2024 quarter to ₹3904.2 crore in the quarter under review. Gross NPA ratio increased to 1.90% compared to 1.88% in the preceding quarter.

The net NPA, meanwhile, increased to ₹1,195.3 crore at the end of June 2024 quarter from ₹1,160.5 crore in the previous quarter. The net NPA ratio declined marginally to 0.59% from 0.6%.

The provisions for bad loans stood at ₹994.4 crore in the June quarter, up from ₹476.2 crore in the same quarter year and ₹722.3 crore in the preceding quarter.

Loans and Advances (including credit substitutes) increased by 22.0% YOY from ₹1,71,578 crore as of June 30, 2023 to ₹2,09,361 crore as of June 30, 2024, the lender said in a statement. It added that the bank continues to wind down infrastructure financing as per the stated strategy and now constitutes only 1.3% of total funded assets as of June 30, 2024.

Credit to Deposit Ratio improved from 107.3% as of June 30, 2023 to 98.1% as of June 30, 2024, according to the lender’s regulatory filing.

Total Deposits of the bank increased by 35.8% YOY from ₹1,54,427 crore as of June 30, 2023 to Rs. 2,09,666 crore as of June 30, 2024. While customer deposits increased by 37.8% year-on-year from ₹1,48,474 crore to ₹2,04,572 crore as of June 30, 2024, retail deposits grew by 43.5% YOY to ₹1,64,001 crore by June 30, 2024. Retail deposits constitute 80.2% of total customer deposits as of June 30, 2024.

CASA deposits grew by 36.1% YOY from ₹71,765 crore as of June 30, 2023 to ₹97,692 crore as of June 30, 2024 and CASA Ratio stood at 46.6% as of June 30, 2024.

The Bank opened 11 new branches during Q1 FY25 to reach branch count of 955 by June 30, 2024.

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