IDFC First Bank's Q2 Profit Plummets 73% Despite 21% NII Growth

27 Oct 2024 , 04:57 PM

IDFC First Bank reported a 73.3% year-on-year drop in Q2 FY25 net profit, at ₹200.7 Crore, compared to ₹751.3 Crore in the same quarter of FY24.

Net Interest Income (NII) rose 21.2% YoY, reaching ₹4,788 Crore, reflecting growth in interest from lending activities.  Operating income grew by 21% YoY, while operating expenses rose at a slower rate of 18% YoY. Core operating profit (excluding trading gains) increased by 28% YoY, with total operating profit up by 30% YoY.

Customer deposits surged by 32.4% YoY to ₹2,18,026 Crore, with retail deposits rising 37% to ₹1,75,300 Crore and CASA deposits up 37.5% at ₹1,09,292 Crore. CASA ratio stood at 48.9%, and the cost of funds remained stable at 6.46%; excluding legacy borrowings, it was 6.37%.

Total loan book expanded by 21.5% YoY, reaching ₹2,22,613 Crore, with retail loans growing by 25.1% and corporate loans (non-infrastructure) by 20%. Gross NPA slightly increased by 2 basis points to 1.92%, while net NPA improved by 11 basis points to 0.48%.

Provision coverage ratio rose by 589 basis points to 75.27%, while urban retail collection efficiency stayed at 99.5%. Capital adequacy ratio stood robust at 16.36%, with a CET-I ratio of 13.84%.