Tuesday, 29 October 2019

IDFC FIRST Bank's Strong and sustained growth in CASA Deposit franchise, Retail loans

Highlights of the IDFC First Bank's performance for the QUARTER ENDED SEPTEMBER 30, 2019

The Bank reported a Profit Before Tax of Rs. 100 crore for the quarter ended September 30, 2019, as
compared to a Loss of Rs. 583 crore as on September 30, 2018.

The Bank chose to exercise the option permitted under section 115BAA of the Income Tax Act, 1961,
introduced by the Taxation Law Amendment Ordinance, 2019, to move to new corporate tax rate of 25%which will give long term benefits to the Bank. 

After considering the tax impact of Rs. 751 crore due to markdown of existing Deferred Tax Assets, the Bank reported a Net Loss of Rs. 680 crore for Q2 FY20. 

The full impact of this change has been incorporated in the tax line of the Profit & Loss Statement.

Net Interest Income for the reported quarter was at Rs. 1,363 crore, up 202% Y-o-Y from Rs 451 crore (pre-merger), and up 16% QoQ (Rs. 1,174 crore).

Total Income (Net Interest Income plus fees and other revenues) for the quarter was at Rs. 1,712 crore, up 200% Y-o-Y (Rs. 571 crores), and up 15% QoQ (Rs. 1485 crore).

The Net Interest Margin for the Bank grew to 3.43% for the quarter, from 1.56% pre-merger, in a span of just nine months since merger.

The Cost to Income ratio of the Bank improved to 75.61% for the quarter, from 96.72% per-merger, and compared to 78.60% last quarter Q1 FY20.

The Pre-Provisioning Operating Profit of the Bank has increased to Rs. 417 crore, up 2133% YoY from Rs. 19 crore in the corresponding period last year, and by 31% sequentially (Rs. 318 crore in Q1 FY20)

The Profit Before Tax of the Bank for the quarter was at Rs. 100 crore, as against a loss of Rs. 583 crore in the corresponding period last year and as against a loss of Rs. 963 crore in Q1 FY20.

The Gross NPA of the Bank was stable at 2.62% in Q2 FY 20 as compared to 2.66% as of Q1 FY 20.
The NET NPA of the bank was stable at 1.17% as compared to 1.35% as of June 30, 2019.

The asset quality in the retail business continues to be stable. The gross NPA was 2.31% (Q2 FY 20) as compared to 2.32% (Q1 FY 20); the Net NPA reduced to 1.08% ( Q2 FY 20) as compared to 1.14% (Q1 FY 20).

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