Profit statements

IDFC First Bank’s fourth quarter profit increases 168% year-on-year

Mumbai: IDFC First Bank said on Saturday that its net profit for the quarter ended March 2022 jumped 168 percent year-on-year to Rs 343 crore from Rs 128 crore in the corresponding period last year.

The bank’s profit in the quarter was driven by strong growth in core operating income and lower provisions. For the full financial year 2021-22, the bank posted a net profit of Rs 145 crore compared to Rs 452 crore recorded in 2020-21, registering a decline of 68% year-on-year.

IDFC First Bank said in a statement that profit in the 2021-22 financial year declined sharply due to higher provisioning in the first quarter of the fiscal year to manage the impact of the second wave of COVID- 19 on its assets.

The bank’s net interest income increased by 36% on an annual basis to reach Rs 2,669 crore in the fourth quarter of 2021-22. Net interest income for the financial year 2021-22 increased by 32% year-on-year to reach 9,706 crore rupees, compared to 7,380 crore rupees recorded in 2020-21.

The net interest margin improved to 6.27% in the quarter under review, compared to 5.17% in the corresponding quarter of the previous year.

For the full fiscal year 2021-22, the bank’s net interest margin improved to 5.96% from 5.03% recorded the previous year.

Fees and other income rose sharply by 40% year-on-year to Rs 841 crore in the fourth quarter of 2021-2022 from Rs 600 crore in the corresponding period of the previous year. The increase was 13% on a sequential basis. In FY22, expenses and other income increased by 66% year-on-year to Rs 2,691 crore from FY 21 crore of Rs 1,622.

Commenting on the results, V Vaidyanathan, Managing Director and CEO of IDFC First Bank, said, “We are pleased to share that our core operating profit for the fourth quarter of FY22 more than doubled (up by 106%) to reach Rs 836 crore from Rs 405 crore in Q4 FY21. This shows the power of the business model we are building. »

“In retail, which is one of the main drivers of growth, NPA has continued to decline for the past 4 quarters. Our retail gross NPA declined sharply from 4.01% over the FY21 to 2.63% in FY22, and net NPA reduced from 1.90% in FY21 to 1.15% in FY22,” Vaidyanathan said.

“Based on internal analysis, we are comfortably on track to reduce retail GNPA and NNPA to 2% and below 1% respectively, as previously reported,” he added.