IDFC First Bank garners whopping 266% yoy growth in Q2FY23 PAT to ₹556 cr

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The bank's profitability was driven by strong growth in core operating income. 

The bank's asset quality improved while interest income saw a robust growth. 

The bank plans to sustain this trend as the new lines of businesses launched.

During the quarter , core operating income stood at ₹3,947 crore in Q2FY23 rising by 35% compared to ₹2,930 crore in Q2-FY22 aided by strong NII and fee income growth.

Meanwhile, net interest income (NII) climbed by 32% to ₹3,002 crore in Q2FY23 from ₹2,272 crore in Q2 of FY22.

Net interest margin expanded to 5.98% in the quarter under review from 5.83% in Q2FY22 and 5.89% in Q1FY23.

We are confident of sustaining this trend as the new lines of businesses launched, such as cash management, wealth management, FASTag, and credit cards, are at the start of the journey and have immense potential going forward Said by V Vaidyanathan, the Managing Director, and CEO, IDFC FIRST Bank.

During the quarter, the bank's GNPA and NNPA of the Retail and Commercial Finance book were at 2.03% and 0.73% respectively, QoQ improvement by 8 basis points and 20 basis points respectively.

As of September 30, 2022, IDFC First's funded assets jumped by 25% yoy to ₹1,45,362 crore. Retail Loan and Commercial loans grew by 40% yoy to ₹1,09,669 crore, of which Home Loans grew by 59% yoy. Corporate Book (Non-Infrastructure) grew by 20% on yoy basis to ₹24,883 crore. However, infrastructure financing dipped by 41% yoy to ₹5,992 crore.

In terms of deposits, IDFC First Bank garnered customer deposits of ₹1,14,004 crore up by 36% yoy. CASA Ratio was at 51.28% as on September 30, 2022, as compared to 50.04% as on June 30, 2021 and as compared to 51.28% as on September 30, 2021. Average CASA Deposits grew by 32% YoY and by 13% QoQ.

As of September 31, 2022, the bank has 670 branches and 812 ATMs(including recyclers) across the country. The Bank has added 29 branches and 93 ATMs since March 31, 2022.

V Vaidyanathan, the Managing Director, and CEO, IDFC FIRST Bank, said, “We have built a strong foundation at the bank over the past three years. This includes a strong retail liabilities franchise with strong CASA ratio of 50% and great service standards. Our philosophy of ethical banking and high levels of corporate governance are also our pillars. I believe we can grow from here on in a stable manner."

My take:-

Small is Beautiful and Manageable.

Reference:

https://www.livemint.com/companies/company-results/idfc-first-bank-garners-whopping-266-yoy-growth-in-q2-pat-to-rs-556-cr-11666442706158.html

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