Buoyed by growth across parameters and fall in provisions, IDFC First Bank on May 22 reported profit at Rs 71.54 crore for the quarter ended March 2020.
It had posted loss of Rs 218 crore in year-ago quarter and loss of Rs 1,639 crore crore in December quarter 2019.
Net interest income for the quarter surged 40.5 percent (up 1.9 percent QoQ) to Rs 1,563.5 crore with net interest margin expanding to 4.24 percent (against 3.03 percent YoY).
Total funded loan assets, gross of inter-bank participation certificates (IBPC) stood at Rs 1,07,004 crore for Q4FY20, compared to Rs 1,10,400 crore for Q4 FY19," IDFC First Bank said, adding retail loan book increased by 40 percent to Rs 57,310 crore as on March 2020 YoY while wholesale book decreased by 27 percent to Rs 39,388 crore YoY.
The bank said it focused on growing the retail loan book and decreased the wholesale loan book including infrastructure loans to reduce concentration risk on the portfolio.
Core deposits (retail CASA and retail term deposits) increased 157 percent to Rs 33,924 crore in Q4FY20, it added.
Non-interest income grew sharply by 77 percent (down 16 percent QoQ) to Rs 483.77 crore compared to year-ago, while pre-provision operating profit jumepd 118 percent (down 24 percent QoQ) to Rs 520 crore in Q4FY20 YoY.
Provisions and contingencies plunged significantly to Rs 412.4 crore in March quarter, down 37.1 percent YoY and 82.1 percent QoQ.
"Provision for Q4FY20 was at Rs 679 crore which included Rs 225 crore of COVID-19 related provision. The bank was required to make COVID-19 related provision of Rs. 25 crore pertaining to accounts where asset classification benefit was given. The bank has provided the entire amount in Q4-FY20 itself. Retail provisions for the quarter was Rs 349 crore," Bank detailed about provisions.
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On the asset quality front, gross NPA of the bank reduced to 2.60 percent as of March 2020 against 2.83 percent in December 2019 and net NPA dipped to 0.94 percent against 1.23 percent QoQ.
"The gross NPA and net NPA for the bank without considering the moratorium impact would have been 2.88 percent and 1.14 percent for Q4FY20 respectively," said the bank.
Apart from the NPA, the bank said the identified stressed asset pool of the bank, reduced by Rs 933 crore during the last financial year. "This stressed pool stood at Rs 3,205 crore as of March 2020 against which the bank has done provisioning of Rs 1,569 crore, 49 percent of the pool."
The bank had also marked one large telecom account as stressed and provisioned 50 percent against the total outstanding of Rs 3,244 crore (Funded – Rs 2,000 crore and non-funded – Rs 1,244 crore) in December quarter 2019. "The bank continues to carry the same provision for the account as of March 2020," it said.