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Private lender IDFC First Bank reported a growth of 168% in its profits for the quarter as the figure stood at Rs 343 crores against Rs 128 crores for the corresponding quarter last year.
The total income of the company grew to Rs 5,384.88 crores from Rs 4,811.18 crores. The Net Interest Income, the main source of income for any bank, grew 36% to Rs 2,669 crores while fees and other income grew 40% to Rs 841 crores.
However, provisions fell 36% to Rs 369 crores on the back of better Gross & Net NPA ratios, 3.4% & 1.53% respectively.
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"Our core operating profit for Q4 22 has more than doubled (up 106 percent) to Rs 836 crore as compared to Rs 405 crore in Q4 FY 21. This shows the power of the business model we are building. Our PAT is up 168 percent year-on-year from Rs 128 crore to Rs 343 crore," V Vaidyanathan, Managing Director, and CEO, IDFC FIRST Bank, said.
Annually, the bank's profits declined 68% from Rs 452 crores to Rs 145 crores due to high provisioning in the early quarters to cushion the blow of Covid's second wave. The total income grew from Rs 18,179.19 crores to Rs 20,394.72 crores. NII rose 32% to Rs 9,706 crores while fees and other income grew 66% to Rs 2,691 crores.
The bank said that it is seeing the impact of the second covid wave diminish as the lender's cash flows and asset quality improved. The Bank's CASA deposits, Current Account & Savings Account, grew 11% during the year to reach Rs 51,170 crores. The CASA ratio stood at 18.3% for the year-end.
The stock of IDFC appears to be in a downtrend as it keeps falling. Recently it touched a low of Rs 37.60 per share, a price level it hadn't seen since January 2021. Since January 2022, the stock has declined over 20% as the stock closed at Rs 39.50 on Friday.
Article by Aman Agarwal.
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