IDFC First Bank’s net profit up 50 pc to Rs 152 cr during the September quarter

IDFC First Bank on Saturday reported an almost 50% increase in its stand-alone net profit to Rs 151.74 crore for the quarter ended September 2021, with collection efficiency exceeding pre-COVID levels. The bank posted a net profit of Rs 101.41 crore in the same quarter a year ago. Sequentially, there was a net loss of Rs 630 crore in the quarter ended June 2021. Total income during the July-September period of fiscal 22 increased to Rs 4,880.29 crore, from Rs 4,090.87 crore in the same quarter of FY21, it said in a statement. regulatory filing. Interest income was Rs 4,100.58 crore, compared to Rs 3,924.86 crore. NII (net interest income) increased 27% year-on-year to Rs 2,272 crore in the second quarter of fiscal 22, the bank said. Provisions for bad debts and contingencies were significantly increased to Rs 474.95 crore as bad debts increased. The bank had parked aside Rs 213.40 crore towards the same during the period of last year. There was a depreciation on the asset quality front, with gross non-performing assets (NPA or bad debt) reaching 4.27% of gross advances at the end of the second quarter of FY22, compared to 1.62% earlier. In terms of value, it stood at Rs 4,485.53 crore, compared to Rs 1,486.11 crore. Net NPA also rose to 2.09% (Rs 2,150.34 crore) from 0.43% (Rs 390.95 crore). However, the bank said the gross and net APNs for the quarter ended September 30, 2020 are not comparable because an interim Supreme Court order ordered banks to only account for accounts that had not been reported as APNs until. ‘as of August 31, 2020, should not be declared non-performing accounts. The order was linked to the financial crisis caused by the pandemic. On a consolidated basis, the bank posted a net profit of Rs 110.95 crore, up slightly from Rs 109.03 crore earlier. Total income rose to Rs 4,830.14 crore from Rs 4,090.91 crore. Personal loan assets increased 30% from a year ago to Rs 78,048 crore, mainly thanks to the growth of home loans which increased by 46%, said the lender. “The efficiency of early collection of buckets has surpassed pre-COVID levels for urban and rural retail loans,” he added. IDFC First Bank Managing Director and CEO V Vaidyanathan said: “We are seeing a strong recovery in the economy and strong demand for home loans, home loans, MSME and consumer loans. The personal loan portfolio is now very diversified across more than 10 lines of business and millions of customers. ” The quality of the deposit franchise has also improved considerably; he said, adding that the CASA (savings account to current account) ratio has held steady at over 50 percent even after cutting rates. When it comes to asset quality, we are confident that we will soon return to the pre-COVID levels of gross and net PAD of 2% and 1% again in retail, as shown in the improvement of input indicators such as check / money order reimbursement percentages, collection efficiency and collections, ” he added.

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