IDFC Bank, which started operating as a bank from October last year, reported Rs 165 crore net profit for the quarter ended March 31. Its third quarter profit stood at Rs 242 crore.
Profitability was under pressure as the gross non-performing loan ratio went up to 6.2 per cent from 3.1 per cent and net NPA to 2.4 per cent from 1 per cent.
In absolute terms, gross NPA more than doubled in the last quarter to Rs 3,058 crore.
“What is causing confusion in the market is that people are seeing gross NPA numbers rise. That was pretty much expected. But the point is the deterioration in the gross NPA numbers does not signal any deterioration in the overall asset quality. Because our overall stressed assets has remained what it was before, around Rs 9,000 crore,” said Rajiv Lall, Managing Director and Chief Executive Officer, IDFC Bank.
The bank has seen a credit growth of 15 per cent to Rs 48,474 crore in the last one year and expects loan growth to be 15-20 per cent in FY17.
The bank’s management said the focus of the bank would be to increase the retail book while the wholesale book, which is mainly infrastructure loans, will remain unchanged.
