IDFC First Bank Q3 Results: Profit Doubles To Rs 605 Crore
The private sector bank had reported a profit of Rs 281 crore for the Oct-Dec period of 2021-22.
IDFC First Bank on Saturday reported a two-fold jump in its net profit to Rs 605 crore for the quarter ended Dec. 2022, driven by growth in operating income.
The private sector bank had reported a profit of Rs 281 crore for the October-December period of 2021-22.
The bank's total income increased to Rs 7,064.3 crore in the third quarter this fiscal from Rs 5,197.8 crore in the corresponding quarter of 2021-22, IDFC First Bank said in a stock exchange filing.
The bank said customer deposits increased 44% from Rs 85,818 crore as of Dec. 31, 2021, to Rs 1,23,578 crore as on Dec. 31, 2022.
CASA deposits grew by 39% year-on-year from Rs 47,859 crore as of Dec. 2021 to Rs 66,498 crore as of Dec. 2022.
On the asset quality, it said the gross NPA improved from 3.96% at end-Dec. 2021 to 2.96% as of Dec. 2022.
The Net NPA at quarter ending Dec. 2022 improved to 1.03% from 1.74% in the year-ago quarter.
Net interest income grew 27% year-on-year from Rs 2,580 crore in the third quarter of 2021-22 to Rs 3,285 crore in Oct-Dec quarter of the current fiscal. Fee and other income grew by 50% annually to Rs 1,117 crore in the quarter ending Dec. 2022.
"... we have registered our highest ever profit of Rs 605 crore in Q3-FY23 and our return on equity has now moved firmly into double digits", said V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank.
He further said a strong foundation has been built for the bank with CASA ratio at 50% and strong retail deposit franchise contributing 77% of the overall customer deposits.
Net profit for the nine months of 2022-23 increased to Rs 1,635 crore from net loss of Rs 197 crore in April-Dec. 2021-22.
The bank further said while the core operating income (NII plus fees, excluding trading gains) grew 32% to Rs 4,402 crore in the December quarter of 2022-23, the operating expense grew slower than income growth at only 23% , thus resulting in improved operating leverage.
Consequently, the Core Operating Profit (excluding trading gains) grew by 64% year-on-year to Rs 1,225 crore for the October-December quarter of 2022-23.