(PTI) IDFC First Bank on Saturday reported its highest ever net profit of ₹474 crore for the quarter ended June 2022, mainly driven by lower provisioning and higher income.
The private sector lender had posted a net loss of ₹630 crore in the year-ago quarter.
Sequentially, the net profit rose by 38.2 per cent from ₹343 crore in the March 2022 quarter.
"We have posted the highest ever profit after tax of ₹474 crore in Q1FY23. Our return on assets has nearly touched 1 per cent and we expect it to rise from here," V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank said.
The bank's total income during the April-June period of 2022-23 also rose to ₹5,777.35 crore against ₹4,931.76 crore in the same period of 2021-22, IDFC First Bank said in a regulatory filing.
The core interest income grew by 20.4 per cent to ₹4,921.68 crore compared to ₹4,089.29 crore. Income from other sources was marginally up 1.6 per cent at ₹855.67 crore from ₹842.47 crore.
The asset quality of the bank showed improvement as the gross non-performing assets (NPAs) fell to 3.36 per cent of the gross advances in the June 2022 quarter against 4.61 per cent a year ago.
In absolute value, the gross NPAs (or bad loans) declined to ₹4,354.75 crore from ₹4,669.13 crore.
The net NPAs too came down to ₹1,653.82 crore (1.30 per cent) from ₹2,293.18 crore (2.32 per cent).
This helped the lender narrow down the requirement to be parked aside towards provisions and contingencies to ₹307.99 crore for the quarter compared to ₹1,872.31 crore in the year-ago period.
Core operating profit (excluding trading gains) rose 64 per cent to ₹987 crore in the June 2022 quarter, the bank said.
Among others, the bank's net interest income (interest earned minus interest expended) grew by 26 per cent to ₹2,751 crore in Q1FY23. Also, the net interest margin improved to 5.89 per cent from 5.50 per cent.
The lender said its corporate book (non-infrastructure) grew by 12 per cent to ₹23,970 crore, while infrastructure financing reduced by 35 per cent to ₹6,739 crore.
On the key ratios, the capital adequacy stood strong at 15.77 per cent as of June 30, 2022, the bank said. The average liquidity coverage ratio (LCR) was 128 per cent.
Vaidyanathan said the bank has built a strong foundation on the basis of which it can grow the loan book, deposits and profits comfortably from here on in a steady manner.
"We have seen a steady growth of over 20 per cent year-on-year, both on the lending side as well as the deposits side in Q1FY23. Our ex-treasury core operating profit has grown by 64 per cent to touch nearly ₹1,000 crore, which is a key landmark for us," he said.