IDFC First Bank reported a 168.2 per cent jump in its standalone net profit for the fourth quarter of last fiscal driven by strong growth in core operating income and lower provisioning.
For the quarter ended March 31, 2022, the bank’s standalone net profit was ₹342.73 crore compared to ₹127.81 crore in the fourth quarter of 2020-21.
The private sector lender’s net profit for fiscal year 2021-22 however, fell 68 per cent to ₹145 crore as against ₹452 crore in 2020-21. In a statement on Saturday, the bank said this was due to higher provisioning in the first quarter of last fiscal to manage the Covid-19 second wave impact on its assets.
Net interest income for the bank grew 36 per cent year on year for the fourth quarter of 2021-22 to ₹2,669 crore from ₹1,960 crore a year ago.
Net interest margin (quarterly annualised) of the bank improved to 6.27 per cent in the fourth quarter of last fiscal from 5.17 per cent a year ago.
Fee and other income increased by 40 per cent year-on-year to ₹841 crore during January to March 2022 quarter.
Provisions were lower by 36 per cent at ₹369 crore in the fourth quarter of last fiscal compared to ₹580 crore in the same period in the previous fiscal.
“The bank has not utilised the Covid provision during the quarter and carries Covid provisions of ₹165 crore as of March 31, 2022,” IDFC First Bank said.
Asset quality improves
Gross non performing assets ratio was 3.7 per cent as on March 31, 2022 versus 4.15 per cent as on March 31, 2021. Net NPA ratio was also lower at 1.53 per cent as on March 31, 2022 from 1.86 per cent as on March 31, 2021.
V Vaidyanathan, Managing Director and CEO, IDFC First Bank said that based on internal analysis, the bank is comfortably on our way to reduce retail GNPA and NNPA to 2 per cent and less than 1 per cent respectively as guided earlier.
The bank’s board has granted an approval to raise funds by issue of debt instruments in one or more tranches, up to ₹3,000 crore over and above the outstanding debt securities issued by the bank and within its overall borrowing limits, for a period of one year from the conclusion of annual general meeting.