Its net interest income (NII) during the quarter rose 25.4% to Rs 4,695 crore while interest income jumped 28% to Rs 8,789 crore.
The lender’s net interest margin (Gross of IBPC and sell-down) reduced from 6.33% in Q1 FY24 to 6.22% in Q1 FY25. Its fee and other income grew 19% YoY from Rs 1,341 crore in Q1 FY24 to Rs 1,595 crore in Q1 FY25.
The pre-provisioning operating profit rose 25.5% to Rs 1,882 crore as compared to Rs 1,500 crore in the corresponding quarter of the previous fiscal year. During the quarter, IDFC First Bank’s GNPA came to 1.9%, a drop of 2 bps sequentially. The net NPA rose up marginally by 1 bps to 0.59% quarter-on-quarter.
“Provisions normalized this quarter in line with the industry. We took extra provisions for MFI business because of massive floods in Tamil Nadu and because of seasonality. We expect credit cost to normalise in H2 FY25 as guided earlier,” said IDFC First Bank CEO and MD V Vaidyanathan.Deposits
Total deposits of the bank increased by 35.8% YOY to Rs 2,09,666 crore as in Q1 while CASA deposits grew 36.1% YoY to Rs 97,692 crore. CASA Ratio stood at 46.6% as on June-end.Retail deposits, which constituted 80.2% of total customer deposits, grew by 43.5% YoY to Rs 1,64,001 crore.Loans and advances
Loans and advances (including credit substitutes) increased by 22% YoY to Rs 2,09,361 crore as of June-end. The bank said it continues to wind down infrastructure financing as per the stated strategy and now constitutes only 1.3% of total funded assets.
Its exposure to top 20 single borrowers improved from 7% as of June 30, 2023 to 5.4% as of June 30, 2024.
Capital adequacy including profit for Q1 was strong at 15.88% with CET-1 Ratio at 13.34% as on June 30, 2024. Including Capital raised in July 2024, the Capital Adequacy Ratio as on June 30, 2024 would be 17.21%, with CET-1 ratio at 14.67%.