IDFC First Bank on Saturday posted over two-fold rise in net profit to Rs 343 crore in the March 2022 quarter on the back of strong core operating income and lower provisioning for bad loans. The private sector lender had reported a net profit of Rs 128 crore in the same quarter of the previous fiscal.
The total income during the January-March quarter of 2021-22 rose to Rs 5,384.88 crore from Rs 4,811.18 crore in the same period of FY21, IDFC First Bank said in a regulatory filing. "The net profit for Q4-FY22 grew by 168 per cent to Rs 343 crore from Rs 128 crore in Q4 FY21, driven by strong growth in core operating income and lower provisioning," the bank said.
The net interest income (NII) during the quarter increased by 36 per cent to Rs 2,669 crore, while fee and other income jumped 40 per cent to Rs 841 crore. Provisions other than tax came down by 36 per cent to Rs 369 crore in the March 2022 quarter, the lender said, adding asset quality at a gross and net level reduced by 45 and 33 basis points to 3.40 per cent and 1.53 per cent, respectively.
"Our core operating profit for Q4 22 has more than doubled (up 106 per cent) to Rs 836 crore as compared to Rs 405 crore in Q4 FY 21. This shows the power of the business model we are building. Our PAT is up 168 per cent year-on-year from Rs 128 crore to Rs 343 crore," V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said. However, the net profit for 2021-22 fell 68 per cent to Rs 145 crore from Rs 452 crore in 2020-21, due to higher provisioning in the first quarter of FY22 to manage the COVID-19 second wave impact on its assets, IDFC First Bank said.