IDFC First Bank vaults after strong Q3 business update

IDFC First Bank jumped 4.16% to Rs 41.35 after the bank's customer deposits increased by 41% to Rs 77,289 crore as on 31 December 2020 (Q3 FY21) from Rs 54,631 crore as on 31 December 2019 (Q3 FY20).

Sequentially, the bank's deposits have risen by 11% as on 31 December 2020 compared with Rs 69,368 crore as on 30 September 2020 (Q2 FY21).

Retail deposits (CASA and term deposits) of the bank improved 100% to Rs 58,435 crore in Q3 FY21 from Rs 29,267 crore in Q3 FY20. This was higher by 18% as compared to Rs 49,610 crore in Q2 FY21.

Wholesale deposits of the bank decreased by 26% to Rs 18,854 crore in Q3 FY21 from Rs 25,364 crore in Q3 FY20. This was lower by 5% as compared to Rs 19,758 crore in Q2 FY21.

The private lender said that top 20 depositors as a percentage of customer deposits has reduced to 9.7% at 31 December 2020 from 23% as of 31 December 2019. The same was 12.4% as of 30 September 2020.

Average CASA ratio for Q3 FY21 was 44.6% as compared to 20.9% for Q3 FY20 and 36.5% for Q2 FY21.

The overall funded assets of the bank increased to Rs 1,10,499 crore in Q3 FY21 from Rs 1,09,698 crore in Q3 FY20 (YoY growth of 0.7%). This was at Rs 1,06,828 crore in Q2 FY21 (QoQ growth of 3%).

IDFC First Bank provides a range of financial solutions to individuals, small businesses and corporates. The bank reported a net profit of Rs 101.41 crore in Q2 FY21 as against a net loss of Rs 679.50 crore in Q2 FY20. Total income during the quarter declined by 9.1% YoY to Rs 3,969.12 crore.

The scrip soared as much as 11.44% to hit the day's high at 42.85 from the day's low at 38.45 in trade today.

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