IDFC First Bank posted a net loss of ₹679.50 crore in the second quarter of the fiscal as it took the benefit of lower corporate tax rate and marked down deferred tax assets. “Net loss (after tax) was ₹680 crore for the quarter, as a result of one-time tax impact of ₹751 crore due to markdown of existing deferred tax assets,” it said in a statement on Thursday.
The private sector lender had a net loss of ₹369.68 crore in the second quarter of last fiscal. For the quarter ended September 30, its net interest income surged by 202 per cent to ₹1,363 crore, from ₹451 crore (before merger). The bank’s net interest margin grew to 3.43 per cent for the second quarter from 1.56 per cent pre-merger from a year ago.
IDFC Bank and Capital First had completed the merger in December last year to form IDFC First Bank. Provisions also fell by 89.5 per cent to ₹317.35 crore in the July to September 2019 quarter, when compared to ₹601.38 crore in the corresponding period last fiscal.
Asset quality of the bank was stable. Gross non-performing assets amounted to ₹2,306.26 crore in the second quarter of the fiscal, or 2.62 per cent of gross advances from 1.63 per cent pre-merger a year ago. However, it declined quarter-on-quarter from 2.66 per cent of advances.