IDFC First Bank’s net profit dipped 9.8% to Rs 724 crore for the fiscal fourth quarter due to a sharp rise in provisions.

In the year-ago period, the private lender’s net profit stood at Rs 803 crore.

During the quarter ended March 2024, the bank’s provisions for bad loans rose 50% amounting to Rs 722 crore. 

Total income rose to Rs 9,861 crore in the fiscal fourth quarter of FY24 from Rs 7,822 crore a year ago.

Net interest income (NII) grew 24% to Rs 4,469 crore in Q4 FY24 from Rs 3,597 crore in Q4 FY23.

Fee income rose 36% to Rs 1,610 crore while operating expenses rose 29% to Rs 4,447 crore.

Asset Quality

On the asset quality side, the bank's gross non-performing assets (NPAs) declined to 1.88% of gross advances as of 31 March 2024, from 2.51% a year ago.

Net NPAs also dropped to 0.60% of the advances at the end of 2024,

from 0.86%. 

The bank reported a provision coverage ratio of 86.5%.

Deposits

Total deposits rose 39% to Rs 2 lakh crore while the share of CASA stood at 47.2% as of 31 March 2024. 

Retail deposits stood at Rs 1.51 lakh crore and legacy high-cost borrowing at Rs 11,809 crore.

Advances

The bank’s loan book grew 25% to Rs 2 lakh crore. The share of infrastructure project finance stood at 1.4%. 

Capital Adequacy

The capital adequacy ratio of the bank declined to 16.11% from 16.82% at the end of previous fiscal.