Suryaa Business Desk: Q2 net profit nearly triples to Rs 1,045 crore.. Loans grow 30 percent! Surya Banking & Business Bureau, New Delhi: Leading private sector... Q2 net profit nearly triples to Rs 1,045 crore.. Loans grow by 30 percent! Surya Banking & Business Bureau, New Delhi: Leading private sector banking giant IDFC First Bank has posted strong financial results for the second quarter.
In the quarter (Q2) ended September of the current financial year, the bank's net profit (PAT) rose by 196.5 per cent year-on-year to Rs 1,045 crore, a nearly three-fold growth. The bank revealed that the main reason for this profit surge is the significant recovery in core operating profit and improvement in asset quality. Strong Growth in Earnings, Deposits: All the Bank's core business segments recorded strong growth: Net Interest Income (NII): Up 21 percent year-on-year to Rs 6,184 crore.Core Operating Profit: Excluding trading profits, core operating profit rose 38.5 percent to Rs 2,527 crore. Fees and other income grew by 24.5 per cent to Rs 2,285 crore. Loan expansion: The bank's total loan assets grew by 30.1 per cent year-on-year to a record high of Rs 3,46,913 crore as on September 30. Total deposits: Deposits grew by 25.9 per cent to Rs 3,48,583 crore.
Despite not having any physical branches abroad, FCNR(B) mobilized deposits worth Rs.34,390 crore during the quarter through their state-of-the-art digital platforms. Improved Asset Quality – Reduced NPAs: Bank's non-performing loans (NPAs) have come down drastically. Gross NPA (GNPA) fell to 1.32 percent from 1.86 percent in the same quarter last year. Also, Net NPA has been reduced from 0.53 percent to 0.40 percent. Credit cost on average assets has reduced to 1.01 percent. The bank's management clarified that the core cost-to-income ratio improved to 70.16 percent as revenue growth was faster than the increase in operating expenses.