IDFC First Bank declines after dismal Q1 earnings

IDFC First Bank slipped 1.06% to Rs 51.45 after the bank posted a standalone net loss of Rs 630 crore in Q1 FY22 as compared to a net profit of Rs 93.55 crore posted in Q1 FY21.

Total income rose by 11.4% to Rs 4,938 crore in Q1 FY22 over Q1 FY21. The private sector bank's operating profit before provisions and contingencies rose 12.3% to Rs 1,001.22 crore in Q1 FY22 from Rs 891.64 crore in Q1 FY21. The bank posted a pre tax loss of Rs 877 crore in Q1 FY22 as compared to a profit before tax of Rs 127.55 crore in Q1 FY21.

Provisions and Contingencies spiked nearly 146% to Rs 1,878.61 crore in Q1 FY22 from Rs 764 crore in Q1 FY21. During the quarter ended 30 June 2021, the bank made an additional COVID-19 related provision amounting to Rs 350 crore. The bank holds cumulative COVID-19 related provision of Rs 725 crore as at 30 June 2021.

Net interest income grew 25% year on year to Rs 2,185 crore in Q1 FY22 as compared to Rs 1,744 crore posted in Q1 FY21. Net interest margin stood at 5.51% as of 30 June 2021 as compared to 4.98% in 31 March 2021. The bank plans to expand the NIM to about 5% - 5.5% in the next five years based on better cost of funds and carefully selecting the product segments where we have strong proven capabilities over the years.

On the asset quality front, gross non-performing assets (GNPA) ratio stood at 4.61% as of 30 June 2021 as against 4.15% in 31 March 2021 and 1.99% as of 30 June 2020. Net non-performing assets (NNPA) ratio stood at 2.32% as of 30 June 2021 as against 1.86% as at 31 March 2021 and 0.51% as 30 June 2020.

IDFC First Bank was founded by the merger of IDFC Bank and Capital First in December 2018.The bank provides a range of financial solutions to individuals, small businesses and corporates. As of 31 March 2021, the bank has 596 branches and 592 ATMs and 85 recyclers across the country.

Powered by Capital Market - Live News