IDFC Bank, a latest entrant into the private sector lending space of the country, today reported a net profit of Rs 165.06 crore for the March quarter.
IDFC Bank, a subsidiary of infrastructure finance company IDFC Ltd, started its banking operations in October last year, therefore no data is available for comparison.
"The financial results for the year ended March 31, 2016, include the financial performance of IDFC Bank as a bank for the period of six months (October 1, 2015 to March 31, 2016).
"Accordingly, the financial results for the quarter/year ended March 31, 2016, are not comparable with corresponding previous quarters/year," the bank said in regulatory filing.
Total income of the bank stood at Rs 1,953.20 crore during January-March period of 2015-16, it said.
Bank's gross non-performing assets (NPAs) were 6.16 per cent of the gross advances as on March 2016, while net NPAs or bad loans stood at 2.39 per cent during the period under review.
On yearly basis, bank's net profit was at Rs 466.85 crore and total income stood at Rs 4,052.03 crore.
IDFC Bank was incorporated on October 21, 2014, as a company. Pursuant to grant of banking licence by the RBI and other related approvals, IDFC Bank commenced its banking operations on October 1, 2015.
"The Board of Directors has proposed a dividend of Rs 0.25 per share (2.50 per cent) for the year ended March 31, 2016,subject to approval of members at the ensuing Annual general meeting," it added.
The company's stock closed 2.02 per cent up at Rs 52.95 apiece on BSE.
Key Financials
Balance Sheet (Rs. Crore)
Particulars Jun-16 Mar-16 % Growth
Shareholders' Funds 13,903 13,633 2%
Borrowings 70,667 57,160 24%
Deposits 13,029 8,219 59%
Other liabilities and provisions 4,095 4,204 -3%
Total Liabilities 1,01,694 83,216 22%
Cash and Bank Balances 3,799 2,904 31%
Investments 47,268 29,729 59%
Advances 45,914 45,699 0.5%
Fixed and Other Assets 4,713 4,884 -4%
Total Assets 1,01,694 83,216 22% Income Statement (Rs. Crore)
Particular Q1 FY17 Q4 FY16 % Growth
Operating Income 711.7 554.5 28%
Net Interest Income 515.2 411.5 25%
Non-Interest Income 196.5 143.0 37%
Operating Expenses 276.8 294.7 -6%
Pre-Prov Op Profit (Ppop) 434.9 259.8 67%
Provisions & Contingencies 23.6 11.9 98%
Profit Before Tax 411.3 247.9 66%
Tax 146.5 82.9 77%
Profit After Tax 264.8 165.
Key Ratios
Particular Q1 FY17 Q4 FY16
Return on Assets 1.1% 0.8%
Return on Equity 7.7% 4.9%
Book Value Per Share (') 41.0 40.2
NIMs 2.4% 2.1%
Capital Adequacy Ratio 20.4% 22.0%
Of which Tier I 19.9% 21.5%
Gross NPL (% of Loans) 6.1% 6.2%
Net NPL (%) 2.3% 2.4% Net Worth and Capital Adequacy
Net worth of the Bank stood at Rs. 13,903 crore as on June 30 2016, as compared to Rs. 13,633 crore on March 31, 2016. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 20.39% as at the end of the quarter. Tier 1 Capital adequacy ratio stood at 19.91%.
Asset Quality
The Gross NPL and Net NPL of the Bank as at the end of the Quarter stood at Rs. 3,030 crore and Rs. 1,111 crore respectively. Gross NPL as a percentage to Gross Advances stood at 6.1% and Net NPL as a percentage to Net Advances at 2.3%. Network As on June 30, 2016, IDFC Bank had 65 branches (of which 50 branches were in Bharat Banking, 11 in Consumer Banking and 8 in Commercial & Wholesale Banking), 14 ATMs and 330 Micro ATMs. It expanded its network in Madhya Pradesh and expanded into Karnataka and Andhra Pradesh. To deepen financial inclusion, the bank is placing a special focus on segments such as marginal farmers, micro enterprises and the self-employed. In July 2016, IDFC Bank signed a share purchase agreement to acquire 100% of Grama Vidiyal Micro Finance, one of the largest microfinance institutions in the country. Upon completion of acquisition, Grama Vidiyal will be a wholly-owned subsidiary of IDFC Bank.
