IDFC Bank Q1 Result, Profit rises 60% to Rs 264.76 crore

IDFC Bank Ltd said its fiscal first quarter profit rose 60% to Rs.264.76 crore from Rs.165.06 crore in the preceding March quarter.

The earnings can’t be compared with the previous year as IDFC Bank started operations in October.

IDFC Bank and Bandhan Bank had received in-principle approvals from the Reserve Bank of India in 2014 to start universal banks.

IDFC Bank’s total income increased 12% to Rs.2188.28 crore from the preceding quarter ended 31 March. Net interest income stood at Rs.515.2 crore for the April-June quarter, a rise of 25% from the March quarter.

Total credit grew 7% to Rs.57,470 crore as on 30 June from the preceding quarter. Deposits rose 59% to Rs.13,029 crore from the March quarter.

Gross non-performing assets (NPA) were at Rs.3,029.87 crore as on 30 June. The bank’s gross NPA ratio as a share of gross advances was at 6.09%, as compared with 6.16% in the March quarter. Provisions made during the quarter were atRs.23.60 crore in first quarter, higher than Rs.11.89 crore in January-March period.

Return on asset for the new bank stood at 1.15% for the April-June quarter compared with 0.8% in March quarter. Capital adequacy ratio stood at 20.3% for the June quarter according to Basel-III norms.

As on 30 June, IDFC Bank had 65 branches in total out of which 50 branches were in rural areas. In July 2016, IDFC Bank signed a share purchase agreement to acquire 100% stake in Tamil Nadu-based Grama Vidiyal Microfinance Ltd.