IDFC First Bank Q3 net profit rises 117% to Rs 281 cr

Private lender IDFC First Bank’s net profit rose by 117 per cent to Rs 281 crore in third quarter ended December 2021 (Q3FY22) as against Rs 130 crore in the year-ago period.

Its net interest income (NII) grew by 36 per cent on a YoY basis to reach Rs 2,580 crore in Q3FY22. Net interest margin (NIM) stood at 5.9%, excluding interest income pertaining to prior period for one telecom account.

The fee and other income grew by 28 per cent YoY to reach Rs 744 crore in Q3FY22, the lender said in a statement on Saturday.

The provisions other than tax declined by 32 per cent Y-o-Y basis at Rs 392 crore in Q3-FY22. Provision Coverage Ratio (PCR) stood at 67.16 per cent including technical write-off).

It’s gross non-performing assets (GNPA) stood at 3.96 per cent and net NPA at 1.74 per cent as of end of December 2021.

V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “Credit indicators, including cheque bounces, collections, recovery, vintage show that the credit performance is improving. Bank would like to improve our guidance for credit costs next year (FY23) to 1.5 per cent of the funded assets, in the absence of any lockdowns.”

Its capital Adequacy Ratio (CAR) stood at 15.38 per cent with Common Equity Ratio of 14.83 per cent in December 2021.

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