IDFC Bank Q1 results: profit at ₹474.33 crores against year-ago loss

IDFC First Bank on the 30th of July posted its highest realised ever independent profit of Rs 474.33 crore for the quarter which ended on June 2022, Compareing it with a loss of 630 crore for the same period of previous financial year. Higher core operating income and lower provisions contributed to profitability, with 38% consecutive profit growth.

Net interest income with is the difference between interest earned and profit spent, increased by 26% to Rs 2,751.1crore in the June 23 quarter from Rs 2,184.8 crores which was recorded a year ago, for an enhancement of 39 basis points year on year in net profit margin increased to 5.89% for the quarter, the IDFC First bank disclosed this information in a BSE filing. But the net margins fell by 38 basis points on a sequential basis.

“We have seen a steady growth of over 20 percent YoY, both on the lending side as well as the deposits side in Q1FY23. Our return on assets has nearly touched 1 percent and we expect it to rise from here,” said V Vaidyanathan, the CEO and managing director of the company.

The bank disclosed the provision and contingencies for the quarter at Rs 308 crore declining by 83.55 % year on year and on the consecutive decrease in the same was 16.6%.

IDFC First Bank says it is on track to meet asset quality and credit guidance costs. Based on the improvement of the portfolio’s performance indicators, the bank is confident to achieve its target credit cost forecast for fiscal year 23 at around 1.5 percent on funded assets.

The asset quality , gross NPA as a percentage of gross advances enhanced to 3.36 ℅ down by 34 basis points sequentially and net NPAs reduced to 1.3℅ in Q1FY23, from 1.53 percent in Q4FY22.