IDFC First Bank Q4 Results: Profit Up 10% On Higher Core Income

IDFC First Bank Ltd.'s net profit rose in the fourth quarter of fiscal 2024, meeting analysts' estimates.

The standalone net profit increased 9.8% year-on-year to Rs 724 crore for the quarter ended March, according to an exchange filing on Saturday. Analysts polled by Bloomberg estimated a net profit of Rs 756.14 crore.

The lender's net interest income, or core income, stood at Rs 4,469 crore, an increase of 24% year-over-year. Other income grew 17.5% year-on-year to Rs 1,642 crore.

IDFC First Bank Q4 Results Highlights (Standalone)

• Net profit up 9.8% at Rs 724 crore vs Rs 803 crore (YoY).

• Net interest income up 24% to Rs 4,469 crore vs Rs 3,597 crore (YoY).

• Gross NPA at 1.88% vs 2.04% (QoQ).

• NNPA at 0.60% vs 0.68% (QoQ).

Asset quality for the lender improved, with the gross non-performing asset ratio falling 16 basis points quarter-on-quarter to 1.88%. The net NPA ratio, too, improved to 0.60%, compared to 0.68% in the previous quarter.

Provisions for the quarter increased 49.7% year-on-year to Rs 722 crore. The provision coverage ratio, including technical write-off, stood at 86.58% for the quarter ended March.

The lender's operating expenses grew by 29% on a yearly basis to Rs 4,447 crore. Of these, employee costs grew 27.6% year-on-year to Rs 1328 crore, and other operating expenses grew 30.2% to Rs 3119 crore on a yearly basis.

IDFC First Bank's total deposits, including certificates of deposit, increased 38.7% year-on-year to Rs 2 lakh crore. Of these, customer deposits increased 41.6% year-on-year to Rs 1.93 lakh crore, and retail deposits grew by 45.7% year-on-year to Rs 1.51 lakh crore.

CASA deposits grew by 31.7% year-on-year to Rs 94,768 crore. The CASA ratio for the quarter stood at 47.2%.

Loans and advances (including credit substitutes) increased to Rs 2 lakh crore, up 25.1%.

The bank's board approved enabling it to borrow funds up to Rs 5,000 crore through the issuance of debt instruments for a period of one year. It also approved the reappointment of V. Vaidyanathan as MD and CEO for three years, subject to approvals from the Reserve Bank of India.