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IDFC FIRST Bank Q2 FY23 Profit After Tax up 266 percent YoY at Rs. 556 Crore | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mumbai, Maharashtra, India
Financial results at a glance Earnings
Deposits
Assets
Asset Quality
Capital Adequacy & Liquidity
The Board of Directors of IDFC FIRST Bank, in its meeting held today, approved the unaudited financial results for the quarter and the half year ended September 30, 2022.
Detailed note On Business & Financial performance of the Bank
Earnings
Profitability Ratio:
Deposits The Bank continues to strengthen its liability franchise with consistent growth in Deposits.
Funded Assets (Net of IBPC)
A. Retail Funded Assets:
B. Commercial loans:
C. Corporate (non-Infra) funded book increased by 20% YoY to Rs. 24,883 crore as on September 30, 2022 from Rs. 20,822 crore as on September 30, 2021. It increased by 4% on a sequential basis.
D. Infrastructure Financing book reduced by 41% on a YoY basis to Rs. 5,992 crore as on September 30, 2022 from Rs. 10,142 crore as on September 30, 2021. This portfolio now constitutes only 4.1% of total funded assets as on September 30, 2022 as compared to 8.7% as on September 30, 2021. The Bank will continue to run down this legacy infrastructure financing book.
Asset Quality The overall Asset Quality has improved during the year. The following is the segment-wise Gross and Net NPA:
*No new case was added during the quarter. This is due to the book ramp-down.
Capital and Liquidity Position
Comments from Managing Director and CEO Mr. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “We have built a strong foundation at the bank over the past three years. This includes a strong retail liabilities franchise with strong CASA ratio of 50% and great service standards. Our philosophy of ethical banking and high levels of corporate governance are also our pillars. I believe we can grow from here on in a stable manner.”
“Our profit after tax has grown consistently for the 5th consecutive quarter, reflecting the resilience of our franchise. I am happy to share that we have posted the highest-ever profit in the history of the Bank this quarter at Rs. 556 crore, driven by strong growth in core operating income. We are confident of sustaining this trend as the new lines of businesses launched, such as cash management, wealth management, FASTag, credit cards, are at the start of the journey and have immense potential going forward.”
“On the asset quality front, we have a long track record of 12 years of maintaining our retail gross NPA and net NPA at around 2% and 1% respectively through the economic slowdown in 2010-2014, Demonetisation in 2016, GST implementation in 2017, and ILFS crisis in 2018-19. I am happy to share that even after COVID, the retail asset quality has reverted to long term sustainable levels with GNPA of 2.03% and NNPA of 0.73% as of September 30, 2022.”
Going forward, we are optimistic about maintaining our growth momentum on the basis of strong foundations we have built at the Bank.
About IDFC FIRST Bank IDFC First Bank was formed by the merger of erstwhile IDFC Bank, promoted by renowned infrastructure financing institution IDFC Ltd. and leading technology NBFC, Capital First. The bank believes in making customer-first products, and was the first universal bank to offer monthly interest credit on savings accounts, first bank to issue life-time free credit cards with no minimum spend conditions, first bank to offer dynamic and low APR rates, evergreen rewards points, and many other such interesting products.
The Bank’s vision is to build a world class bank in India, guided by ethics, powered by technology, and to be a force for social good. Our mission is to touch the lives of millions of Indians in a positive way by providing them high-quality banking services.
IDFC FIRST Bank, has a balance sheet of Rs. 2,12,776 crore, and has provided over 30 million loans in its combined history and serves customers in over 60,000 villages, cities and towns across the length and breadth of the country.
In a short time, the Bank has expanded to 670 branches, 249 asset service centres, 812 ATMs and 606 rural business correspondent centres across the country, a next-generation net and mobile banking platform and 24/7 Customer Care services. IDFC FIRST Bank is committed to bring high-quality banking at affordable rates to India. The Bank also offers high quality technology-enabled corporate banking solutions, contemporary cash management solutions, fleet card and FASTag solutions and wealth management solutions.
To view IDFC FIRST Bank Results, click here.
Cautionary Statement “Statements made in this release may contain certain forward-looking statements based on various assumptions on the Bank’s present and future business strategies and the environment in which it operates. Actual results may differ substantially or materially from those expressed or implied due to risk and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India and abroad, volatility in interest rates and in the securities market, new regulations and Government policies that may impact the Bank’s businesses as well as the ability to implement its strategies. The information contained herein is as of the date referenced and the Bank does not undertake any obligation to update these statements. The Bank has obtained all market data and other information from sources believed to be reliable or its internal estimates, although its accuracy or completeness cannot be guaranteed.” |
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