Private lender IDFC First Bank reported a net loss of Rs 630 billion in the April-June quarter on Saturday due to precautionary measures to cushion the effects of the second wave of the Covid19 pandemic. The bank had a net profit of Rs 93.55 billion for the year. The quarter ended in June 2020 and that of Rs 127.81 billion in the previous quarter ended in March 2021.
“The net loss of Rs 630 for the first quarter of fiscal year 22 is due to prudent provisions for the Covid wave 2.0. The Covid’s provision pool increased on a cautious basis from 375 billion to 725 billion in the current quarter.
The bank expects to collect a fair share of these fees on time, he added.
Total revenue (minus interest expenses) increased in the first quarter of the fiscal year 22, up 36 percent to Rs 3,034 billion, driven by growth in the NII and fee income, the bank said.
The bank said its Net Interest Margin (NIM), the difference between interest accrued and interest paid, was $ 5 for the quarter .51 percent was the highest of all time. The NIM was 4.86 percent in the year-ago quarter.
Net Interest Income (NII) rose 25 percent annually to 2 .185 billion rupees.
On the assets side, the bank’s gross and net non-performing assets (NPA) as of June 30, 2021 were 4.61% and 2.32%, respectively.
NPA rates increased from 1.99% and 0.51%, respectively, over the previous year.
“The GNPA and NNPA have an impact of 84 bps (basis points, which is one hundredth of a percentage) and 71 bps, respectively, on an infrastructure toll bill in Mumbai that fell during the quarter on a functioning toll road and it is only being delayed.”
bank deposits rose 36 percent to Rs 84,893 crore. Lender’s retail loan book increased from Rs 56,043 billion to Rs 72,766 billion on June 30, 2021.
YoY Retail loan book growth was 27% excluding loan book of Rs 1,645 million; however, it decreased sequentially by 1.2%. crore of Rs 40,275 crore.
The equity ratio was 15.56 percent, the CET1 (Common Equity Tier 1) ratio was 14.86 percent. The average liquidity coverage ratio (LCR) was 166 percent in the first quarter of fiscal year 22.
“We have made great strides at the bank in just two years.Our CASA (checking savings account) index is high at 50.86 percent, although interest rates on savings accounts were recently reduced by 200 basis points, which indicates the trust customers have in our banking and service quality.
“With our low-cost CASA, we are now able to participate in the world-class home loan business, which is a great business opportunity,” said V Vaidyanathan, CEO and CEO of IDFC First Bank. The bank has taken careful precautions for the second wave of Covid.
“We expect provisions to be reduced for the remainder of the three quarters in FY22 Go ahead provided there are no more closings,” he said.