IDFC First Bank Q3 results: Net profit at Rs 130 crore as provisions decline

IDFC First Bank reported a net profit of Rs 130 crore in the quarter ended December 31, 2020, as provisions declined significantly. The bank, which came into existence after the merger of IDFC Bank and Capital First, had posted a loss of Rs 1,639 crore in the corresponding quarter last fiscal. In sequential terms, the lender had reported a profit of Rs 101 crore in the preceding quarter.

Net interest income (NII) grew by 14 per cent year-on-year to Rs 1,744 crore in Q3 FY21 from Rs 1,534 crore in Q3 FY20, as per regulatory filing by the bank. It grew by 5 per cent quarter-on-quarter from Rs 1,660 crore in Q2 FY21. NII for the current quarter includes the impact of provision for interest reversal for proforma NPA cases, the lender informed. Net interest margin (NIM) improved to 4.65 per cent in Q3 FY21 as compared to 3.86 per cent in Q3 FY20 and 4.57 per cent in Q2 FY21.

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"The total provisions for Q3 FY21 were Rs 595 crore as compared to Rs 2,305 crore (including provision of Rs 1,622 crore on one telecom exposure) in Q3 FY20 and as compared to Rs 676 crore in Q2 FY21. This includes additional COVID provisions of Rs 390 crore made during the quarter," IDFC First Bank said.

Total income (including trading gain) grew 24 per cent YoY to Rs. 2,616 crore in Q3 FY21 from Rs 2,113 crore in Q3 FY20. It grew by 14 per cent QoQ from Rs 2,288 crore in Q2 FY21. Pre-Provisioning Operating Profit (PPOP), including trading gains worth Rs 290 crore, grew 13 per cent YOY to Rs 773 crore in Q3 FY21 as compared to Rs 682 crore in Q3 FY20 (including trading gains of Rs 142 crore). It de-grew by 4 per cent QoQ from Rs 803 crore in Q2 FY21 (including trading gains of Rs 337 crore).

Current Account and Savings Account (CASA) deposits increased 150 per cent YoY to Rs 40,563 crore as on December 31, 2020, from Rs 16,204 crore as on December 31, 2019. Meanwhile, CASA ratio improved to 48.31 per cent as on December 31, 2020, from 24.06 per cent as on December 31, 2019. Average CASA Ratio also improved to 44.66 per cent as on December 31, 2020, from 20.88 per cent as on December 31, 2019.

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IDFC First Bank's gross NPA (GNPA) reduced to 1.33 per cent as of December 31, 2020, from 1.62 per cent as of September 30, 2020. Its net NPA (NNPA) reduced to 0.33 per cent as of December 31, 2020, from 0.43 per cent as of September 30, 2020. Provision Coverage Ratio (PCR) was 75.14 per cent as of December 31, 2020 as compared to 57.34 per cent as of December 31, 2019.

"The above figures include the impact of the Hon. Supreme Court notification to stop NPA classification post August 31, 2020, till further orders. Without this impact, the proforma GNPA as on December 31, 2020 would have been 4.18 per cent and the proforma NNPA would have been 2.04 per cent. As compared to Long Term Average of 4 pre-COVID quarters, the proforma GNPA is higher by 155 bps," the bank said.

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