IDFC First Bank Reports Strong Q1: Net Profit Jumps 61%, High CASA Ratio

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IDFC First Bank Reports Strong Q1: Net Profit Jumps 61%, High CASA Ratio
Credit: © Reuters.

By Malvika Gurung -- The private sector lender IDFC First Bank Ltd (NS: IDFB ) released its earnings results for the quarter ended June 30, 2023, over the weekend, reporting a sharp growth in bottomline and strong asset quality.

The bank’s net profit jumped 61% on a year-on-year (YoY) basis to Rs 765 crore in the first quarter of the financial year 2023-24, compared to Rs 474 crore in the same period last year, led by strong growth in core operating income.

The lender’s core operating profit also witnessed a sharp 45% uptick in the June quarter at Rs 1,427 crore on a YoY basis from Rs 987 crore in the year-ago period.

IDFC FIRST Bank posted a 36% YoY jump in its Net Interest Income (NII) at Rs 3,745 crore for the Apr-June quarter as compared to Rs 2,751 crore in the corresponding quarter of the previous year.

The bank’s Net Interest Margin (NIM), a key profitability indicator, rose to 6.33% in Q1 FY24 from 5.77% in Q1 FY23 and 6.41% in the March 2023 quarter.

The mid-cap lender’s provisions increased sharply by 55% YoY to Rs 476 crore in the quarter ended June 30, 2023, as opposed to Rs 308 crore in the same quarter last year, while its CASA deposits surged 27% YoY to Rs 71,765 crore in the period.

IDFC FIRST Bank’s asset quality continued to remain strong in the reporting quarter, with gross NPA improving to 2.17% in Q1 FY24 from 3.36% as of the June 2022 ended quarter, and 2.51% in the March quarter.

Its net NPA fell to 0.7% in the quarter under review from 1.3% YoY and 0.86% sequentially.

“We continue to build a strong franchise with a high CASA Ratio of 46.5%. Our retail deposits are growing well, based on our strong positive brand, ethics, customer-friendly products and digital innovations,” said IDFC First Bank’s MD & CEO V Vaidyanathan.

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  • Ashok Khandelwal @Ashok Khandelwal
    250 in july 2024
    Like 0
  • Manju Jalde @Manju Jalde
    100 plus soon idfc rocks multibagger safe stock
    Like 0
  • Rohit Kumar @Rohit Kumar
    120 till next quarter
    Like 2

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