Table of Content
Financial Results Overview (IDFC FIRST Bank – Quarter ending December 31, 2023)
Profitability:
1. Net Profit: Increased by 18% Year-on-Year (YoY) from Rs. 605 crore (Q3-FY23) to Rs. 716 crore (Q3-FY24).
2. Net Interest Income (NII): Grew by 30% YoY, reaching Rs. 4,287 crore (Q3-FY24) compared to Rs. 3,285 crore (Q3-FY23).
3. Net Interest Margin: Recorded at 6.42% (Q3-FY24), showing an improvement from 6.13% (Q3-FY23) and 6.32% (Q2-FY24).
4. Fee and Other Income: Witnessed a substantial 32% YoY growth, reaching Rs. 1,469 crore (Q3-FY24), with retail fees comprising 93% of total fees.
5. Core Operating Income: Increased by 31% YoY, totaling Rs. 5,755 crore (Q3-FY24) from Rs. 4,402 crore (Q3-FY23).
6. Operating Expense: Grew by 33% YoY, reaching Rs. 4,241 crore (Q3-FY24) compared to Rs. 3,177 crore (Q3-FY23).
7. Core Operating Profit: Grew by 24% YoY to Rs. 1,515 crore (Q3-FY24) from Rs. 1,225 crore (Q3-FY23).
8. Provisions: Increased by 45% YoY, reaching Rs. 655 crore (Q3-FY24) from Rs. 450 crore (Q3-FY23).
9. Credit Cost: Quarterly annualised credit cost as a percentage of average funded assets for 9M-FY24 was 1.26%.
10. Return on Assets (RoA): Annualised RoA stood at 1.16% for 9M-FY24.
11. Return on Equity (RoE): Annualised RoE stood at 10.67% for 9M-FY24.
Additional Read: Q3 Results Dashboard
Deposits & Borrowings Overview (IDFC FIRST Bank – December 31, 2023):
Customer Deposits:
1. Showed substantial growth of 42.8% Year-on-Year (YoY), escalating from Rs. 1,23,578 crore (December 31, 2022) to Rs. 1,76,481 crore (December 31, 2023).
CASA Deposits:
2. Experienced a noteworthy 28.6% YoY increase, surging from Rs. 66,498 crore (December 31, 2022) to Rs. 85,492 crore (December 31, 2023). The CASA Ratio stood at 46.8% on December 31, 2023.
Retail Deposits:
3. Registered a robust 46.6% YoY growth, rising from Rs. 95,107 crore (December 31, 2022) to Rs. 1,39,431 crore (December 31, 2023).
4. Retail deposits constituted a significant 79% of the total customer deposits as of December 31, 2023.
Legacy High-Cost Borrowings:
5. Demonstrated a reduction from Rs. 18,762 crore (December 31, 2022) to Rs. 13,607 crore (December 31, 2023).
Funded Assets:
6. Witnessed a substantial 24.5% YoY growth, increasing from Rs. 1,52,152 crore (December 31, 2022) to Rs. 1,89,475 crore (December 31, 2023).
7. The bank strategically reduced exposure to infrastructure financing, constituting only 1.6% of total funded assets as of December 31, 2023.
Exposure & Ratios:
8. Exposure to the top 20 single borrowers improved to 5.93% as of December 31, 2023.
9. The Credit to Deposit Ratio displayed positive trends, improving from 109.18% (December 31, 2022) to 101.41% (December 31, 2023). The incremental Credit to Deposit ratio for the quarter 9M-FY24 was 79.89%.
Additional Check: IDFC FIRST Bank Share Price
Assets Quality and Capital Position Overview (IDFC FIRST Bank – December 31, 2023):
Asset Quality:
1. Gross NPA (GNPA): Improved significantly to 2.04% as of December 31, 2023, showcasing a notable enhancement from 2.96% recorded on December 31, 2022.
2. Net NPA (NNPA): Displayed positive improvement, decreasing to 0.68% as of December 31, 2023, compared to 1.03% on December 31, 2022.
3. GNPA of Retail, Rural, and SME Finance: Witnessed positive strides, declining to 1.45% as of December 31, 2023, from 1.87% on December 31, 2022.
4. NNPA of Retail, Rural, and SME Finance: Experienced improvement, decreasing to 0.51% as of December 31, 2023, from 0.70% on December 31, 2022.
5. GNPA and NNPA excluding Infrastructure Financing: Would have been 1.66% and 0.47%, respectively, as of December 31, 2023, showcasing the strategic reduction in infrastructure financing.
6. SMA-1 and SMA-2 in Retail, Rural, and SME Finance: Reduced from 0.87% as of March 31, 2023, to 0.85% as of December 31, 2023, indicating effective management of the pre-NPA stage.
7. Collection Efficiency: Remains robust at 99.6% for urban retail business (excluding prepayments and EMI arrears) in the current bucket.
8. Provision Coverage Ratio: Increased to 84.68% as of December 31, 2023, compared to 76.60% on December 31, 2022, highlighting the bank’s commitment to risk management.
9. Standard Restructured Book: As a percentage of total funded assets, improved to 0.35% at December 31, 2023.
Capital Position & Liquidity:
10. Capital Adequacy: Strong at 16.73%, with CET-1 Ratio at 13.95% as of December 31, 2023. The bank bolstered its capital strength by raising fresh equity capital of Rs. 3,000 crore in the 1st week of October 2023.
11. Liquidity Coverage Ratio (LCR): Maintained strength with an average of 121% for the quarter ending December 31, 2023, underscoring the bank’s robust liquidity position.
About IDFC FIRST Bank
IDFC FIRST Bank is driven by a vision to establish a world-class bank in India with a commitment to ethics, technology, and societal impact. Embracing a customer-first philosophy, the bank distinguishes itself by providing high-quality products. Notably, it is the first and only bank in India offering zero fees for essential services on Savings Accounts. The bank’s credit cards feature lifetime free, never-expiring rewards points, zero interest on ATM cash withdrawals, and a low APR, prioritizing affordability for customers. Upholding an “Ethics First” approach, the bank ensures that income is earned ethically and employs a “Near and Dear” Test in product design. Undergoing a transformative journey from infrastructure to retail banking, the bank significantly increased its CASA ratio from 8.7% to 46.8% by December 31, 2023. With a robust financial performance, including a Profit After Tax of Rs. 2,232 crore in 9M-FY24 and a strong Capital Adequacy of 16.73%, the bank maintains high asset quality and a commitment to ESG goals, focusing on governance, social impact, and environmental sustainability.
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Source : https://www.bseindia.com/xml-data/corpfiling/AttachHis/bfbc2e84-fc61-4b31-a3e8-eb2d8a057b15.pdf
