IDFC FIRST Bank, a leading financial institution in India, has reported a notable increase in its profit after tax (PAT) for the fiscal year ending March 31, 2024. The PAT grew by 21% year-over-year, rising from Rs. 2,437 crore in FY23 to Rs. 2,957 crore in FY24. This growth is even more pronounced at 28% when excluding trading gains from the calculation. These results were part of the financial disclosures approved by the Board of Directors during their recent meeting.

Detailed Financial Highlights and Improved Profitability

The bank’s core Pre-Provisioning Operating Profit (PPOP), excluding trading gains, saw a substantial increase of 31% YOY, reaching Rs. 6,030 crore. Net Interest Income (NII) also grew significantly by 30% YOY to Rs. 16,451 crore, reflecting a stronger interest margin which rose from 6.05% in FY23 to 6.36% in FY24.

Additional financial metrics demonstrate the bank’s expanding scope and profitability:

– Fee and Other Income surged by 40% YOY to Rs. 5,795 crore.

– Core Operating Income grew by 33%, amounting to Rs. 22,245 crore.

– Operating Expenses were up by 33% YOY, totaling Rs. 16,216 crore.

– Provisions for credit losses increased by 43% YOY to Rs. 2,382 crore.

Expansion in Deposits and Advances

The bank has achieved impressive growth in its deposits and loans:

– Total deposits, including Certificates of Deposit, grew by 38.7% YOY to Rs. 2,00,576 crore.

– Customer deposits increased by 41.6% YOY to Rs. 1,93,753 crore.

– CASA deposits rose by 31.7% YOY to Rs. 94,768 crore, with the CASA ratio reaching 47.2%.

– Loans and Advances escalated by 25.1% YOY to Rs. 2,00,965 crore.

Strengthening Asset Quality and Capital Adequacy

The bank’s asset quality has shown marked improvement:

– Gross Non-Performing Assets (NPA) improved to 1.88% from 2.51% at the end of the previous fiscal year.

– Net NPA also improved, dropping from 0.86% to 0.60%.

– The Provision Coverage Ratio increased significantly from 80.29% to 86.58%.

V. Vaidyanathan, Managing Director and CEO of IDFC FIRST Bank, expressed his optimism about the bank’s trajectory: “It is my delight to share that we have crossed a landmark of Rs. 4,00,000 crore mark of Total Deposits and advances including credit substitutes at the Bank. Our asset quality continues to be maintained at all-time best levels, the lowest NPA in our history. Our deposit raising franchise is our biggest strength.”

IDFC FIRST Bank’s financial results signify not only robust growth but also strategic positioning for future opportunities within the Indian financial services sector. The bank’s focus on maintaining a strong asset quality and expanding its deposit base positions it well to capitalize on the growing demand for financial services in India.

  asset quality improvement, Banking industry news, Financial Growth, IDFC FIRST Bank, Indian banking sector, Net Interest Income