IDFC First Bank on Saturday reported that its standalone net profit jumped 18% year-on-year to Rs 716 crore for the quarter ended December 2023. The same stood at Rs 605 crore a year ago.
The net interest income (NII) of the lender rose 30% to Rs 4,287 crore in the third quarter, compared with Rs 3,286 crore in the same quarter of last year.
Other income during the reporting period increased 32% year-on-year to Rs 1,517 crore. It was Rs 1,152 crore in the last-year period.
The bank reported a pre-provision operating profit of Rs 1,562 crore in the October-December period, up 24% year-on-year, compared with Rs 1,261 crore in the corresponding period of the previous fiscal.
Provisions in the December quarter increased sharply by 46% year-on-year to Rs 654 crore. The same stood at Rs 450 in the last-year period. On a sequential basis, provisions jumped 24%.
The net interest margins for the quarter came in at 6.42% in Q3FY24, as compared to 6.13% in Q3FY23 and 6.32% in Q2FY24.
Core operating income (NII plus fees, excluding trading gains) grew 31% from Rs 4,402 crore in the reporting quarter.
Gross non-performing assets of the bank improved to 2.04% as of December 2023 from 2.96% as of December 2022. Meanwhile, net NPAs also improved to 0.68%.
On the business front, customer deposits increased by 43% year-on-year to Rs 1.76 lakh crore at the end of the December quarter.
Funded assets (including advances and credit substitutes) increased by 25% year-on-year to Rs 1.89 lakh crore as of December 2023. The bank said it continues to wind down infrastructure financing, which now constitutes only 1.6% of total funded assets.
The credit-to-deposit ratio improved further in the third quarter to 101.41% crore as of December 2023.
Capital adequacy of the lender was strong at 16.73% with a CET-1 ratio of 13.95% at the end of the third quarter. The bank raised fresh equity capital of Rs 3,000 crore in the first week of October 2023.
On Friday, IDFC First Bank shares closed 1.62% higher at Rs 87.80 on the NSE.
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