IDFC First Bank Ltd. on Tuesday reported first quarter net profit of ₹94 crore as compared to net loss of ₹617 crore for Q1 FY20. The first quarter Net Interest Income (NII) grew 38% y-o-y to ₹1,626 crore, up from ₹1,174 crore in Q1 FY20. “Despite the COVID-19 pandemic and lockdown impact, the q-o-q NII grew by 4%,” the bank said in a filing with stock exchanges.
Net Interest Margin (quarterly annualised) rose to 4.53% in Q1 FY21 from 3.01% in Q1 FY20, it said.
The fee and other income (without trading gains) decreased 54% to ₹148 crore in Q1 FY21 as compared to ₹321 crore in Q1-FY20 due to lower loan originations and reduced banking activity on account of COVID-19 and related lockdown across the country. The trading gain for Q1-FY21 was at ₹337 crore.
Total income grew by 42% at ₹2,111 crore for Q1-FY21 as compared to ₹1,485 crore for the same period last year.
The bank made provision for ₹764 crore as compared to ₹1,281 crore for Q1 FY20. In the first phase of moratorium, the bank took COVID-19 related provision of ₹225 crore through the profit and loss account in the quarter ending on March 31, 2020. During Q1-FY21 the bank created additional COVID-19 related provision of ₹375 crore to further strengthen the balance sheet, it said.
Gross NPA of the bank reduced to 1.99% as of June 30, 2020, as compared to 2.60% as of March 31, 2020. Net NPA was 0.51% as of June 30, 2020, as compared to 0.94% as of March 31, 2020.
This stressed pool stood at ₹3,195 crore as of June 30, 2020 against which the bank has done provisioning of ₹1,668 crore, 52% of the pool.
As of June 30, 2020, the net worth of the bank was ₹17,436 crore and its Capital Adequacy was at 15.03% with CET-1 Ratio at 14.58% as of June 30, 2020 as compared to Capital Adequacy Ratio of 13.38% and CET-1 Ratio of 13.30% as of March 31, 2020.
During the quarter, the bank raised ₹2,000 crore of fresh equity capital through preferential route.
V. Vaidyanathan, MD and CEO, IDFC First Bank, said, “We continue to progress well on all parameters as per the guidance provided for the bank.”
“We have liberally provided moratorium to customers who sought it, and our moratorium was about 45% last quarter. This has reduced to 28% now, which we expect to fall below 10% by August 31, 2020, based on the strong improving trend in collections we are experiencing,” he added.
