- 31 Jan 2022
- ICICIdirect Research
IDFC First Bank posts strong operational performanceIDFCFIRSTB - 73 Change: 0.30 (0.41 %)
News: IDFC First posted strong results for Q3FY22 with NII growing 36% YoY and 13.5% QoQ to Rs.2580 crore, driven by 14 bps sequential expansion in net interest margin at 5.9%. Operating expenses growth on sequential basis was largely in line with total income growth due to increased loan origination cost and digital transaction cost. C/I ratio thus remained steady at 77% QoQ. Provisions were down 17% QoQ at Rs.393 crore. Net profit for the quarter thus jumped by 116% YoY and 85% QoQ to |280 crore. Asset quality improved on sequential basis as GNPA and NNPA declined 31 bps and 35 bps QoQ to 3.96% and 1.74%, respectively. Business growth during the quarter saw good traction as total funded assets were up 10.6% YoY and 4.2% QoQ to Rs.1.2 lakh crore. Customer deposit growth for the bank was at 11% YoY to Rs.85818 crore. CASA ratio for the bank is now at 51.59% up 31 bps QoQ.
Views: IDFC First bank gave a superior beat in profit along with healthy business growth. Guidance on the asset quality front is also encouraging, which, we believe, should reflect positively.