IDFC First Bank reported a net profit of ₹101.47 crore in the second quarter of the fiscal, as against a net loss of ₹679.50 crore in the corresponding period a year ago.
For the quarter ended September 30, the bank’s net interest income grew 22 per cent to ₹1,660 crore as against ₹1,363 crore a year ago.
Net interest margin rose to 4.57 per cent in the second quarter this fiscal.
In a statement on Saturday, IDFC First Bank said it has released 50 per cent of the provision for a large telecom exposure of ₹1,622 crore held as of June 30.
“The bank continues to hold at ₹811 crore of provisions for the total exposure of ₹3,244 crore (25 per cent PCR) on this telecom account as of September 30, 2020, as a prudent measure,” it said.
The provision for the second quarter was at ₹215.84 crore as compared to ₹317.35 crore a year ago.
“The bank has taken additional provision of ₹1,400 crore towards Covid-19 to strengthen its balance sheet further. Including this, as of September 30, 2020, the bank holds such provision of ₹2,000 crore which is 2.21 per cent of its standard advances,” it said.
The Gross NPA of the bank eased to 1.62 per cent as of September 30, from 2.62 per cent a year ago. The net NPA was at 0.43 per cent at the end of the second quarter as against 1.17 per cent as of September 30, 2019.
“This is after the impact of the Supreme Court of India notification to stop fresh NPA classification post August 31, 2020, till further orders,” the bank said, adding that without this impact the GNPA as on September 30, 2020 would have been 1.87 per cent and the NNPA as on September 30, 2020 would have been 0.60 per cent.