IDFC FIRST Bank announces impressive 18% YoY increase in Q3-FY23 profit
The Board of Directors of IDFC FIRST Bank has officially released its unaudited financial results for the quarter and nine months ending December 31, 2023, signaling robust growth and solid financial performance. The bank’s net profit saw an impressive 18% year-over-year increase, from Rs. 605 crore in Q3-FY23 to Rs. 716 crore in Q3-FY24.
Significant Growth in Net Interest Income
A key driver of this growth was the bank’s Net Interest Income (NII), which expanded by 30% YOY from Rs. 3,285 crore in Q3-FY23 to Rs. 4,287 crore in Q3-FY24. This substantial rise in NII is a testament to the bank’s robust financial management and strategic operations.
Noteworthy Enhancements in Profit Margins
The bank’s Net Interest Margin also showed a positive trend, increasing from 6.13% in Q3-FY23 to 6.42% in Q3-FY24. Additionally, Fee and Other Income grew by 32% YoY, indicating a diversified and strong revenue stream.
Robust Financial Growth for IDFC FIRST Bank with 37% YOY Profit Rise in Q3-FY23
Operating Income and Expenses: A Balanced View
IDFC FIRST Bank’s Core Operating income (NII plus Fees, excluding trading gains) grew by 31%, while Operating Expense also saw a 33% YoY increase, reflecting the bank’s strategic investment in its growth and expansion.
Deposits and Borrowings: A Strong Foundation
The bank’s Customer Deposits saw a significant 42.8% YoY increase, with CASA and Retail Deposits growing by 28.6% and 46.6% YoY, respectively. This growth in deposits underlines the bank’s strong customer base and market trust.
Asset Quality and Funded Assets: Robust and Improving
IDFC FIRST Bank continues to demonstrate strong asset quality, with a marked improvement in GNPA and NNPA ratios. The bank’s focus on reducing exposure to infrastructure financing aligns with its strategic vision and has contributed to a healthy balance sheet.
Capital Position and Liquidity: A Secure Outlook
With a solid Capital Adequacy Ratio and strong Average LCR, the bank is well-positioned for future growth. The raising of fresh equity capital further bolsters its financial stability.
CEO’s Vision and Future Guidance
V Vaidyanathan, the Managing Director and CEO of IDFC FIRST Bank, expressed satisfaction with the bank’s deposit growth and asset quality. He emphasized the bank’s vigilant approach and provided a positive outlook for future growth.