IDFC FIRST Bank Reports Strong Financial Performance with 18% YoY Growth in Profit After Tax
IDFC FIRST Bank is committed to building a world-class bank in India, guided by ethics and powered by technology.
Mumbai, Maharashtra, India – In a meeting held today, the Board of Directors of IDFC FIRST Bank approved the unaudited financial results for the quarter and nine months ending on December 31, 2023, showcasing robust financial performance.
Key Financial Highlights:
-
Profitability:
- Net Profit increased by 18% YoY from Rs. 605 crore in Q3-FY23 to Rs. 716 crore in Q3-FY24.
- Net Interest Income (NII) surged 30% YoY from Rs. 3,285 crore in Q3-FY23 to Rs. 4,287 crore in Q3-FY24.
- Fee and Other Income grew by 32% YoY, reaching Rs. 1,469 crore in Q3-FY24.
-
Operating Metrics:
- Core Operating income (NII plus Fees, excluding trading gains) witnessed a 31% growth, reaching Rs. 5,755 crore in Q3-FY24.
- Operating Expense increased by 33% YoY, reaching Rs. 4,241 crore in Q3-FY24.
- Provisions increased by 45% YoY, totaling Rs. 655 crore in Q3-FY24.
-
Deposits & Borrowings:
- Customer Deposits surged by 42.8% YoY, reaching Rs. 1,76,481 crore as of December 31, 2023.
- CASA Deposits grew by 28.6% YoY, amounting to Rs. 85,492 crore, with a CASA Ratio of 46.8%.
- Retail deposits constituted 79% of total customer deposits.
-
Funded Assets:
- Funded assets, including advances & credit substitutes, increased by 24.5% YoY, reaching Rs. 1,89,475 crores as of December 31, 2023.
-
Asset Quality:
- Gross NPA improved to 2.04%, and Net NPA improved to 0.68% as of December 31, 2023.
- GNPA and NNPA for Retail, Rural, and SME Finance segments improved significantly.
-
Capital Position & Liquidity:
- Capital Adequacy remained strong at 16.73%, with CET-1 Ratio at 13.95% as of December 31, 2023.
- Average LCR was robust at 121% for the quarter ending December 31, 2023.
-
Guidance 2.0 (FY 24-29):
- The bank provided a positive outlook for the next five years, indicating growth in deposits, loans & advances, and total assets.
| Particulars | 31-Dec-18 | 31-Dec-23 | 31-Mar-29 | Assumptions |
| Deposits | ||||
| Branches (#) | 206 | 897 | 1700-1800 | Will open based on requirements to meet Deposit Goals |
| Customer Deposits (Rs Cr) | 38,455 | 1,76,481 | 5,85,000 | Guidance 2.0 at 5Y CAGR of 24.8% vs current YoY growth rate of 42.8% |
| - CASA Deposits (Rs Cr) | 5,274 | 85,492 | 2,85,000 | Guidance 2.0 at 5Y CAGR of 24.5% vs current YoY growth rate of 28.6% |
| - Term Deposits (Rs Cr) | 33,181 | 90,990 | 3,00,000 | Guidance 2.0 at 5Y CAGR of 25.2% vs current YoY growth rate of 59.4% |
| Assets | ||||
| Loans & Advances (Rs Cr) | 1,04,660 | 1,89,475 | 5,00,000 | Guidance 2.0 at 5Y CAGR of 20.3% vs current YoY growth rate of 24.5% |
| Total Assets (Rs Cr) | 1,56,916 | 2,70,738 | 7,00,000 | Guidance 2.0 at 5Y CAGR of 19.8% vs current YoY growth rate of 22.3% |
| Asset quality | ||||
| GNPA % | 1.97% | 2.04% | 1.50% | Currently, GNPA is 1.66% as of 31-Dec-23 excluding Infra loans |
| NNPA % | 0.95% | 0.68% | 0.40% | Currently, NNPA is 0.47% as of 31-Dec-23 excluding infra loans |
| Profitability | ||||
| Profit (Rs Cr) | -1,538* | 2,232** | 12,000 – 13,000 | At about 1.9-2% of estimated ROA of FY29 |
| ROA % | - | 1.2% | 1.9-2.0% | IDFC FIRST Business model naturally geared for 2% ROA |
| ROE % | - | 10.7% | 17-18% | IDFC FIRST Business model naturally geared for 18% ROE |
Comments from MD & CEO, Mr. V Vaidyanathan:
“We are pleased to report continued strong growth in deposits, a robust CASA ratio, and improving asset quality. Our profits for 9M-FY24 grew by 37%, reflecting the resilience of our business model. As we mark five years post-merger, we provide Guidance 2.0 (FY 24-29), showcasing a positive outlook and greater visibility compared to our previous guidance.”
About IDFC FIRST Bank:
IDFC FIRST Bank is committed to building a world-class bank in India, guided by ethics and powered by technology. The bank follows a customer-first philosophy, offering high-quality products and emphasizing ethics in all aspects of its operations. With a transformation from infrastructure to retail banking, the bank has recorded significant growth in deposits, loans, and overall financial performance.
Also Read: IDFC FIRST Bank launches FIRSTAP, country’s first Sticker-based Debit Card
