IDFC First Bank's loans grow 24.8% YoY in Q2, deposits up 35.9% YoY

Retail business comprised 66.4 per cent of overall funded assets as of September 30, says private lender

IDFC First Bank’s customer assets, or advances, rose by 24.8 per cent year-on-year (YoY) basis at Rs 1.45 trillion at the end of September 2022 (Q2 FY23). Sequentially, its asset book expanded by 5.6 per cent over Rs 1.37 trillion at end of June 2022 (Q1 FY23).

The YoY growth in deposits was higher 35.9 per cent, standing at Rs 1.14 trillion at the end of September 2022. Deposits grew 10.8 per cent sequentially over Rs 1.02 trillion in June 2022, according to the private lender’s filing with BSE. The share of low-cost money—Current Account and Savings Account (CASA)—in deposits was 51.34 per cent as of September 30, 2022, up from 50.04 per cent as of June 30, 2022.

Mortgage business grew by 29 per cent YoY and constituted 36.9 per cent of the retail book. Retail business, which covers products like home loans, loan against property, vehicles financing, and credit cards, comprised 66.4 per cent of overall funded assets as of September 30, 2022.

Infrastructure loans de-grew by 40.9 per cent on a YoY basis as of September 30, 2022. The bank continues to run down the infrastructure financing book. Such loans further reduced to 4.1 per cent of funded assets as of September 30, 2022, down from 4.9 per cent as of June 30, 2022.

The corporate book (non-infra) grew by 19.6 per cent YoY.

IDFC First Bank said key indicators of asset quality of advances, such as cheque on presentation, are improving. Asset quality of loans booked during the last one year, on a like-to-like vintage comparison basis, is performing better than prior vintage periods, indicating improvement in asset quality going forward, it added.