MUMBAI – IDFC First Bank Ltd reported a 61.3% year-on-year (YoY) rise in net profit for the quarter ended June to Rs 765 crore. Total income from operations grew 43.3% on year to Rs 8,282 crore. Net interest income, the difference between interest earned and interest expended, rose 36% YoY to Rs 3,745 crore.
Operating profit for the quarter, before provisions and contingencies, surged 59% YoY to Rs 1,500 crore.
Provisions and contingencies for the quarter was Rs 476 crore, compared to Rs 308 crore a year ago. Gross non-performing assets (NPA) as a percentage of the total loans was 2.17% as of June end, compared to 3.36% a year ago, and 2.51% a quarter ago.
The net NPA ratio was 0.70% as of June end, compared to 1.30% a year ago, and 0.86% a quarter ago.
The capital adequacy ratio as of June end was 16.96% as of June end, compared to 15.42% a year ago. Net interest margin was 6.33% for the quarter, compared to 5.77% a year ago, and 6.41% a quarter ago.
Fee and other income grew by 49% YoY to Rs 1,341 crore in Q1-FY24. Retail fees constituted 91% of the overall fees for the quarter. Operating expense grew by 37% YoY to Rs 3,659 crore in the quarter, primarily on account of employee increments, branch expansion and increase in business volumes.
The credit cost as a percentage of average funded assets for the quarter was 1.16%, against 1.26% a quarter ago.Customer deposits increased by 44% YoY to Rs 1.48 lakh crore as of June 30, 2023. CASA deposits grew 27% YoY to Rs 71,765 crore.
The CASA ratio reduced to 46.5% as of June 30, from 50.0% a year ago, because of a shift from savings accounts to term deposits due to the prevailing interest rates. Retail deposits grew by 51% YoY to Rs 1.14 lakh crore as of June 30.
Retail deposits constituted 77% of the total customer deposits. On Friday, shares of IDFC First Bank ended 1.7% higher at Rs 83.95 on the National Stock Exchange.