IDFC Bank Q1 profit drops 58.5%


IDFCBank posted a 58.5 percent drop in net profit at Rs 181 crore for the first quarter ending June led by a substantial dip in other income and jump in provisions towards bad loans.

Net profit of the new private sector lender for the same period last year was Rs 437.6 crore.
NII or Net interest income, the difference between interest earned on loans and paid on deposits, increased by 26 percent to Rs 490 crore from Rs 388 crore a year ago.

Other income declined by 69 percent to Rs 198.7 crore from Rs 648.8 crore a year ago on account of treasury losses during the quarter.


Asset quality
Provisions towards bad loans rose to Rs 340 crore from a write-back of provisions of Rs 146 crore in the corresponding quarter a year ago.

As a percentage of total loans, gross non-performing asset (NPA) ratio reduced to 1.24 percent as on June end 2018 from 3.31 percent in the March quarter 2018 and sequentially even lower from 4.13 percent in the June quarter last year.

Net NPAs also marginally declined to 1.63 percent of total loans as against 1.69 percent in the March quarter and 1.70 percent in June last year.

In absolute terms, gross NPAs stayed almost flat at Rs 1,774.5 crore from 1,779 crore in the March quarter and Rs 2,000 crore in June 2017, while net NPAs edged down by a mere Rs 10 crore to Rs 881 crore from Rs 891 crore but increased on a sequential basis from Rs 804 crore.

Capital adequacy ratio was significantly higher at 19.25 percent from 18.60 percent in the same quarter a year ago.

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