IDFC First Bank declined 4.78% to Rs 62.40 after the bank's standalone net profit declined 97.33% to Rs 20.06 crore despite 21.61% jump in total income to Rs 10,684.23 crore in Q2 FY25 over Q2 FY24.
Net profit declined due to prudent provisions of Rs 568 crore including Rs 315 crore in MFI business (stress in MFI industry) and Rs 253 crore in one Maharashtra based toll account (recent waiver of toll fees at Mumbai entry points).Core operating profit (excluding trading gain) grew by 28% YOY from Rs. 1,456 crore in Q2 FY24 to Rs. 1,857 crore for Q2 FY25.
Net interest income (NII) grew 21% YoY to Rs 4,788 crore during the quarter. Net interest margin reduced to 6.18% in Q2 FY25 as compared with 6.22% in Q2 FY24.
Customer deposits increased by 32.4% YOY from Rs. 1,64,726 crore as of September 30, 2023 to Rs. 2,18,026 crore as of September 30, 2024. Retail Deposits grew by 37.4% YOY from Rs. 1,27,595 crore as of September 30, 2023 to Rs. 1,75,300 crore as of September 30, 2024.
CASA Deposits grew by 37.5% YOY from Rs. 79,468 crore as of September 30, 2023 to Rs. 1,09,292 crore as of September 30, 2024. CASA Ratio stood at 48.9% as of September 30, 2024.
Loans and advances (including credit substitutes) increased by 21.5% YoY from Rs. 1,83,236 crore as of September 30, 2023 to Rs. 2,22,613 crore as of September 30, 2024. The retail book of the bank grew by 25% YoY while the corporate (non-infrastructure) loans grew by 20.0% YoY during the quarter.
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Microfinance portfolio as per cent of overall loan book reduced from 6.3% in June 2024 to 5.6% in September 2024.
Gross NPA was 1.92% as of September 30, 2024, against 2.11% as of September 30, 2023. Net NPA was 0.48% as of September 30, 2024, against 0.68% as of September 30, 2023.
Including profits for Q2-FY25 and post the impact of merger, total CRAR as on September 30, 2024 would have been 16.60% with CET-1 ratio of 14.08%.
V Vaidyanathan, managing director and CEO, IDFC First Bank, said, Our core drivers are strong. Our brand, technology, and high service levels are enabling strong growth in deposits. Ability to grow deposits is a key strategic strength of the Bank. Deposits grew healthily at 32% YoY. Our CASA ratio sustained at 48.9%. Our PCR has now improved to 75%.
We have created additional provisioning buffer of Rs. 315 crore for microfinance segment as a prudent measure. Bank has taken additional provision of Rs. 253 cr for one toll road related to Mumbais entry point which was affected because of the State government waiving toll on LMV. Bank will recognize this back as profits depending on toll collections and the governments compensation to the client.
IDFC Bank is a universal bank, offering financial solutions through its nationwide branches, Internet and mobile. The bank provides customized financial solutions to corporate, individuals, small and micro enterprises (SMEs), entrepreneurs, financial institutions and the government.
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