Mumbai: IDFC First Bank on Saturday reported a 168% jump in net profit for the quarter ended March on account of lower provisions and higher net interest income.
The private sector lender reported a net profit of ₹342 crore for March quarter as against ₹127.81 crore a year ago.
The core interest income or net interest income (NII) grew by 36% YoY to ₹2,669 crore in Q4 FY22 as compared to ₹1,960 crore during the corresponding period a year ago.
Net interest margin improved to 6.27% during the fourth quarter from 5.9% in the previous quarter.
Other income which includes fees and commission during the quarter rose by 40% to ₹841 crore from ₹600 crore in the same period of the previous fiscal.
The bank’s asset quality improved as gross non-performing assets (NPAs) or bad loans reduced to 3.7% of the gross advances as of March 31, 2020 as against 3.96% by the same period a year ago.
Similarly, the net NPA improved to 1.53% during the fourth quarter from 1.74% in the third quarter of previous fiscal.
During the quarter the bank set aside lower funds with provisions falling by 36% YoY to Rs. 369 crore as compared to Rs. 580 crore in Q4-FY21.
Operating expense grew 24% YoY at ₹2,674 crore for Q4 FY22 as compared to ₹2,156 crore for Q4 FY21 on account of increased business, said the bank in a regulatory filing.
Deposits rose by 13% year on year to ₹93,214 crore. Loan book grew by 13% driven by retail loans which saw a growth of 28% YoY to Rs. 83,740 crore at the end of 31 March 2022.
“For the first three years after merger, we grew the retail deposits base (3 year CAGR of 72%), and slowed down the loan growth (3 year CAGR only 6%) to strengthen the foundation. Now that our CASA is ~50%, we can comfortably grow our loan book between 20- 25% compounded for the next three years. This will give us strong operating leverage and growth and profitability. Our capital adequacy is strong at 16.74%,” said V Vaidyanathan, managing director and chief executive officer, IDFC First Bank
