· Net Profit grew to Rs. 474 crore in Q1-FY23 from Net Loss of Rs. 630 crore in Q1 FY22
· NII grew by 26% on a YoY basis to reach Rs. 2,751 crore in Q1-FY23
· Net Interest Margin improved to 5.89% in Q1-FY23 from 5.50% in Q1-FY22
· Fee and Other Income grew by 100% YoY to reach Rs. 899 crore in Q1-FY23
· Core operating income (excl. trading gains) grew by 39% YoY to Rs. 3,650 crore in Q1-FY23
· Core operating profit (excl. trading gains) grew by 64% YoY and by 18% QoQ to reach Rs. 987 crore
· Provisions other than tax were lower by 84% YoY basis at Rs. 308 crore in Q1-FY23 at 0.9% (annualized) of average funded assets.
- Customer Deposits: Grew by 21% YoY to reach Rs. 1,02,868 crore
- CASA ratio: 50.04% as of June 30, 2022.
· Funded Assets: Grew by 21% YoY to reach Rs. 1,37,663 crore. Retail Loan and Commercial loans grew to Rs. 1,01,309 crore, of which Home Loans grew by 61% YoY.
- Corporate Book (Non-Infrastructure) grew by 12% on YoY basis to reach Rs. 23,970 crore.
- Infrastructure Financing reduced by 35% YOY to reach Rs. 6,739 crore (reduced to 4.9% of funded assets)
- Asset quality at Bank Level: GNPA and NNPA was at 3.36% and 1.30% respectively which is a YoY reduction of 125 bps and 102 bps and QoQ reduction of 33 bps and 22 bps respectively.
· GNPA and NNPA of Retail and Commercial Finance book reduced to 2.12% (reduction of 174 bps YOY) and 0.93% (reduction of 89 bps YOY), (QoQ reduction by 51 bps and 22 bps) respectively
Capital Adequacy & Liquidity
- Capital Adequacy Ratio (incl. Q1 FY23 profits): Strong at 15.77%.
- Average Liquidity Coverage Ratio (LCR): Strong at 128% for Q1-FY23
Mr. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “We have built a strong foundation for the bank, on the basis of which we can grow the loan book, deposits and profits comfortably from here on in a steady manner.
We have seen a steady growth of over 20% YoY, both on the lending side as well as the deposits side in Q1-FY23. Our ex treasury core operating profit has grown by 64% to touch nearly Rs. 1000 crore, which is a key landmark for us. We have posted the highest ever Profit after Tax of Rs. 474 crore in Q1-FY23. Our return on assets has nearly touched 1% and we expect it to rise from here.
We are happy that even post the pandemic, our retail Gross NPA and Net NPA has reverted to 2.1% and 0.9% respectively which is our long-term experience. More importantly, the retail asset quality has normalized sooner than our earlier guidance of March 2023.”