IDFC First Bank Q3 2024 Results : IDFC First Bank has disclosed its financial performance for the October-December quarter of fiscal 2023-24 (Q3FY24), revealing a robust 18.4% increase in net profit, reaching ₹715 crore compared to ₹604.6 crore in the corresponding period last year. The bank’s net interest income (NII), representing the difference between interest earned and expended, experienced a significant surge of 30.5%, totaling ₹4,286.6 crore, up from ₹3,284.3 crore in the same period last year.
For the nine months ending December 31, 2023, the bank recorded a remarkable 37% growth in net profit, reaching ₹2,232 crore compared to ₹1,635 crore in the previous year. The net interest margin (gross of IBPC and sell-down) for the December quarter was reported at 6.42%, marking an improvement from 6.13% in the corresponding period last year.
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The core operating profit, excluding trading gains, witnessed a substantial 24% year-on-year growth, escalating from Rs. 1,225 crore in the year-ago period. However, provisions increased by 45% annually, rising from Rs. 450 crore in the December quarter of the previous year to Rs. 655 crore.
In terms of asset quality, the bank demonstrated improvement, with the gross non-performing assets (GNPA) decreasing to 2.04% as of December 31, 2023, from 2.96% on December 31, 2022. The net non-performing assets (NPA) also improved to 0.68% from 1.03% in the same comparison period.
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Customer deposits exhibited robust growth, increasing by 42.8% year-on-year to ₹1,76,481 crore as of December 31, 2023. CASA deposits grew by 28.6% year-on-year to Rs. 85,492 crore, with a CASA ratio of 46.8% as of December 31, 2023.
The bank’s capital adequacy remained strong at 16.73%, with CET-1 ratio at 13.95% as of December 31, 2023. Notably, the bank raised fresh equity capital of Rs. 3,000 crore in the first week of October 2023.
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Furthermore, the bank provided an update on its proposed merger, stating that it has received approvals and no objection letters from regulatory authorities such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Competition Commission of India (CCI), BSE Ltd, and the National Stock Exchange of India Limited. The bank has filed a joint Company Scheme Application with the National Company Law Tribunal, Chennai, in relation to the merger.
V Vaidyanathan, Managing Director and CEO of IDFC First Bank, highlighted the bank’s improving asset quality, with gross NPA and net NPA at 1.45% and 0.50%, respectively, as of December 31, 2023, for the retail, rural, and SME business.
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Commenting on the bank’s performance, Vaidyanathan stated, “At the time of the merger of IDFC Bank and Capital First, the bank provided Guidance 1.0. As of 31st December 2023, IDFC FIRST Bank has completed exactly 5 years post the merger and hence we are providing Guidance 2.0 (FY 24-29), with greater visibility as compared to the visibility we had at the time of providing Guidance 1.0. We are likely to meet most targets under Guidance 1.0.”