IDFC Q3 net down 16%

Fat bill for impaired loans dents bottom-line

Infrastructure finance company IDFC Ltd posted a 16 per cent drop in consolidated third quarter net profit at Rs 422 crore on sharp rise in provisions and flat net interest income.

IDFC, which is soon to become a commercial bank, had posted a net profit of Rs 501 crore in October-December 2013 (Q3 of FY14).

IDFC stock closed lower by one per cent at Rs 170 on the BSE. The net interest income for reporting quarter was flat at Rs 661 crore against Rs 664 crore in Q3 of FY14.

However, non-interest income (asset management fees, fixed income etc) rose by 70 per cent to Rs 317 crore, up from Rs 187 crore. The provisions for stressed loans rose by 286 per cent to Rs 182 crore from Rs 47 crore in Q3 of FY15. It, however, had the benefit of write-back of provisions for investments. Its write-back was Rs 29 crore as against Rs 11 crore in Q3 of last year.

The balance sheet increased by 23 per cent from Rs 70,073 crore in December 2013 to Rs 86,388 crore at end of December 2014. Gross Loan book dipped by one per cent from Rs 54,552 crore to Rs 54,004 crore. Gross approvals decreased by 25 per cent from Rs 20,410 crore in April-December 2013 to Rs 15,359 crore in April-December 2014. Gross disbursements rose by 16 per cent to Rs 8,843 crore from Rs 7,639 crore. Its net restructured assets stood at 6.1 per cent of gross loans.