IDFC First Bank Q3 PAT up 117% yoy at Rs281cr on strong growth in core operating income and lower provisioning

31 Jan 2022 , 02:46 PM

IDFC FIRST Bank’s net profit for the quarter ended December 31, 2021, grew by 117% yoy to Rs281cr from Rs130cr in Q3FY21, driven by strong growth in core operating income and lower provisioning. The profit before tax grew by 111% to Rs378cr in Q3FY22 from Rs179cr in Q3FY21. Core operating profit (excluding trading gains) grew by 54% yoy to reach Rs745cr.

Net Interest Income (NII) grew by 36% yoy to Rs2,580cr in Q3FY22, up from Rs1,892cr in Q3FY21. Net Interest Margin (NIM%) (quarterly annualized) of the Bank improved to 5.90% for Q3FY22 from 4.80% in Q3FY21 and 5.76% in Q2FY22.

Fee and Other Income grew by 13% qoq and 28% yoy to reach Rs744cr in Q3FY22. Core operating income (excl. trading gains) grew by 34% yoy to Rs3,324cr in Q3FY22. Provisions other than tax were lower by 32% yoy basis at Rs392cr in Q3FY22.

At around 2.50 pm, IDFC FIRST Bank was trading at Rs46.95 per piece up Rs0.35 or 0.75% on the BSE.

Deposits

• CASA balance: Grew by 18% YoY basis to reach Rs47,859cr
• CASA ratio: 51.59% as of Dec 31, 2021, as compared to 48.31% as of Dec 31, 2020
• Avg. CASA Ratio: 50.54% as of Dec 31, 2021, as compared to 44.66% as of Dec 31, 2020
• Customer Deposits: Grew by 11% yoy to reach Rs85,818cr.

Funded Assets & Asset Quality
Funded Assets: Grew by 11% yoy to reach Rs1,22,219cr

• Retail Loan and Commercial Finance grew by 26% yoy to reach Rs86,052cr, primarily driven by growth in Home Loans which grew by 44% yoy.

Asset quality at Bank Level: GNPA and NNPA reduced sequentially by 31 bps and 35 bps to reach 3.96% and 1.74% respectively. Gross and Net NPA of Retail and Commercial. Finance reduced by 53 bps and 38 bps on a sequential basis.

• PCR increased from 52.06% as at Sept 30, 2021 to 57.06% at Dec 31, 2021 in order to strengthen the balance sheet. (67.16% including technical write-off)
• Collection Efficiency: Early bucket collection efficiency in Retail surpassed PreCOVID levels for both urban and rural retail loans

Capital Adequacy & Liquidity

• Capital Adequacy Ratio: Strong at 15.38% with CET-1 Ratio at 14.83%
• Average Liquidity Coverage Ratio (LCR): Strong at 149% for Q3FY22

V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “The business conditions are normalising. We are seeing strong growth in credit once again; our home loan business has grown by 44% year-on-year. For the last three years, we have been laying a strong foundation by building a strong deposit base, increasing CASA%, dealing with legacy loans, and scaling up core operating profits. Our net interest margin is strong at 5.9%. We have now begun to see the benefit of this work in terms of profitability.”