A jump in provisions against bad loans has led IDFC First Bank to report a standalone net profit of Rs 463 crore, down by 32% on year. This is largely impacted by microfinance business and interest rate movement.
Provisions and contingencies of the bank jumped 67% on year to 1,659 crore. This was impacted by slippages in the bank’s micro-finance book, the press release said.
Due to rise in provisions, the bank’s gross non-performing assets ratio came in at 1.97% as compared to 1.87% a quarter ago. Net NPA also rose slightly at 0.55% as against 0.53% in the prior quarter.
On the profitability side, the bank’s net interest income rose 5.1% on year to Rs 4,933 crore. Consequently, net interest margin at 5.71%, down 24 bps on quarter.
Advances increased by 21% on year from Rs 2.53 lakh crore, led by mortgage loans, vehicle loans, business banking, MSME loans and wholesale loans, which contributed 82% of the total on year growth.
Microfinance portfolio reduced by 37% on year and its proportion to overall loan book reduced to 3.3% as of June 30 as against 6.3% a year ago.
Wholesale book grew by 39% on year to Rs 49,279 crore. Deposits rose 26% on year to Rs 2.56 lakh crore.
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