IDFC Bank Ltd's standalone net loss at Rs369.70cr in Q2FY19 vs. net profit of Rs233.66cr yoy : Misses Estimates

The bank’s standalone NII stood at Rs451cr, down 2.36% yoy and 7.93% qoq.

Oct 30, 2018 04:10 IST India Infoline Research Team

IDFC Bank Ltd Q2FY19

Standalone Results Q2FY19: ( cr)

Q2FY19 YoY (%)
NII 451 [2.4]
GNPA (%) 1.6 [229]
Provisions 601 [698.8]
Net Loss (adjusted) 369.70 -
***GNPA change is bps
IDFC Bank’s Q2FY19 NII has declined by 2.3% yoy to Rs451.2cr against Rs461.9cr. The bank’s net profit was below estimates: it has reported a net loss of Rs369.7cr against a profit of Rs233.7cr. The net loss was due to higher provisions and decline in NII. Its GNPA for Q2FY19 stood at 1.63% against 3.24% qoq, which has declined by 161bps. NNPA for the quarter came at 0.59% against 1.63% qoq, which has declined by 104bps.
  • Yield on advances has increased from 9.1% to 9.4% qoq, meanwhile cost of funds has gone up by 20bps qoq to 7.6% and consequently, spreads have held steady at 1.7%
  • Capital Adequacy ratio is at 19.18% as of Q2FY19
  • The provisions for the quarter have increased drastically to Rs601cr
  • NBFC exposure is Rs10,000cr (Rs3,800cr to HFCs, 56 borrowers in NBFCs), 96% exposure is in A-rated or above NBFCs and ILFS exposure is NIL
  • The management has said that they do not have construction finance exposure in the Real Estate sector 
  • Rs2400cr was sold to ARCs; after this sale to ARCs, the bank now has a stress book of Rs2,896cr towards which the bank has coverage of 80%
  • GNPL fell to Rs900cr (down 50% qoq) with the overall stress pool falling to Rs2,900cr (Rs4,830cr in Q1FY19) as the bank sold Rs2,400cr to ARCs

Technical View:

IDFC Bank Ltd ended at Rs. 35.20, up by 0.8 points or 2.33% from its previous closing of Rs. 34.40 on the BSE.
The scrip opened at Rs. 35 and touched a high and low of Rs. 35.60 and Rs. 34.50 respectively. A total of 1,21,45,906 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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