IDFC First Bank’s Q2 earnings show a 50% increase in net profit to 151 crore and a 27% increase in net interest income

By Team Tech Outlook Published on October 30, 2021, 18:11 IST

IDFC First Bank's Q2 earnings show a 50% increase in net profit to 151 crore and a 27% increase in net interest income

IDFC First Bank recorded a 49.6% increase in its standalone net profit to 151.7 crores for the quarter ended September 30, 2021, compared to the same period last year.

In the previous year, the lender made a net profit of 101.4 crores. In the September quarter, the bank’s net interest income (NII) increased by 27.4% year on year to Rs 2,722 crore, according to a regulatory filing.

Gross non-performing assets (GNPAs) improved slightly in Q2FY22, falling to 4.27 percent from 4.61 percent in Q1FY22. Similarly, net nonperforming assets (NPAs) were 2.09 percent, down from 2.32 percent in the previous quarter.

However, the bank stated that gross and net non-performing assets for the quarter ending September 30, 2020, are not comparable because an interim Supreme Court decision instructed banks not to declare nonperforming assets until August 31, 2020.

The order is in response to the pandemic-related worry that clients experienced last year.

In the same quarter, IDFC First Bank increased its advances by 9.75 percent to Rs 1,17,243 crore. At the end of the second quarter of 2020-21, Gross Funded Assets totaled 1,06,828 crore.

Furthermore, the bank’s deposits increased by 20.8 percent year over year to 83,793 crores in the quarter under review, up from 69,368 crores a year ago. During the quarter, the bank’s low-cost deposits — current account and saving deposits (CASA) — accounted for 51.9 percent of total liabilities.

Total income increased to 4,880.29 crores in July-September FY22, up from 4,090.87 crores in the same quarter of FY21, according to a regulatory filing.

idfc bank q2 earning