IDFC First Bank released its Q1 results on Saturday, reporting a substantial net consolidated profit of ₹765 crore. This figure reflects an impressive 61% YoY increase compared to the ₹474 crore profit recorded during the same quarter in the previous fiscal year. The bank’s net interest income (NII) also experienced significant YoY growth, rising 36% from Rs. 2,751 crore in Q1FY23 to Rs. 3,745 crore in Q1FY24.
Throughout the April-June quarter, IDFC First Bank’s core operating profit surged by 45% to ₹1427 crore, showing a considerable improvement from ₹987 crore in Q1FY23. The net interest margin demonstrated a positive YoY growth from 5.77% in Q1FY23 to 6.3% in Q1FY24. However, it slightly declined from the 6.4% recorded in the previous quarter.
In terms of asset quality, there was a notable reduction in Gross Non-Performing Assets (GNPA), which declined to 2.17% as of June 30, 2023, compared to 3.36% on June 30, 2022, and 2.51% on March 31, 2023. Similarly, the Net Non-Performing Assets (NNPA) also saw significant improvement, dropping from 1.30% in June 2022 to 0.70% in June 2023. In the previous quarter, NNPA stood at 0.86%.
The bank’s collection efficiency for urban retail business (excluding prepayments and EMI arrears) remained impressively high at 99.5%. Moreover, the provision coverage ratio increased to 83.12% as of June 30, 2023, compared to 73.13% on June 30, 2022.
The management expressed its satisfaction with the performance of the company. It reiterated that the bank’s focus is on building a strong franchise, highlighted by a high CASA (Current Account Savings Account) Ratio of 46.5%.
The top official expressed gratitude to the shareholders and customers for their unwavering support during the bank’s transformative phase in the past four years. Looking ahead, IDFC First Bank is confident in further enhancing its performance.