IDFC Bank, which started banking operations from early October last year, reported Rs 242 crore profit for the quarter ending December 31. Operating income was Rs 604 crore while it earned a non-interest income of Rs 200 crore.
The bank garnered deposits worth Rs 1,646 crore during the quarter, most of which were corporate deposits as the lender has launched retail deposit products only in January, Rajiv Lall, vice-chairman and managing director, IDFC Bank, said during the post-earnings conference call.
Its advances grew by Rs 1,000 crore during the quarter. The net interest margin, that is, the difference between interest earned and interested paid, during the quarter was 3.2 per cent.
Gross non-performing asset of the bank stood at 3.1 per cent of its gross advances while net NPA was 1 per cent.
“Stressed asset quality has been stable and it hasn’t grown. The provisions that we had made at the start of the quarter were adequate and we don’t require to make any more provisions at the moment. In absolute terms, the gross NPA is bound to increase in the next 6-12 months but it will not affect earnings or balance sheet or require us to increase provisioning,” Mr Lall said. The cost to income ratio of the lender was 35 per cent, which is expected to go up as the bank ramp up its branch network. “The cost to income ratio will go up initially due to branch expansion but it will come down later to the same level,” Mr Lall said.
As on December 31, the bank has 24 branches and 5 automated teller machines.
The capital adequacy ratio of the bank was 20.3 per cent by December-end , with 19.6 per cent of tier-I capital.
