IDFC Ltd posted a 47 per cent increase in its first quarter net profit at Rs 557 crore, helped by a strong growth in its non-interest income. In the quarter ended June 30, 2012, the non-banking finance company had reported a net profit of Rs 380 crore.
Non-interest income increased to Rs 331 crore from Rs 146 crore.
Non-interest income includes income from principal gains, asset management income, investment banking and institutional broking income, income from fixed income treasury and loan related and other fees. However, the loan approvals and disbursements decreased during the quarter by 78 per cent and 28 per cent to Rs 2,833 crore and Rs 3,211, respectively. Net interest income, the difference between interest earned and interest paid, increased 11 per cent to Rs 686 crore. The company’s gross loan book grew 13 per cent to Rs 57,600 crore.
Provisions
The company’s provisions to cover bad loans decreased to Rs 59 crore from Rs 103 crore. Shares of IDFC closed at Rs 110.95 per share, down 4.06 per cent, on the Bombay Stock Exchange.