IDFC First Bank reports strong overall performanceIDFCFIRSTB - 88 Change: -2.60 (-2.88 %)
IDFC First Bank reported a strong overall performance; asset quality improved further. NII up 32.1% YoY and 9.1% QoQ to Rs 3002 crore, driven by 15 bps YoY, 9 bps QoQ expansion in NIMs at 5.98% and strong business growth. Operating expense (including staff cost) grew 23% YoY and 9% at Rs 2895 crore mainly due to higher business volumes. The credit cost remained steady sequentially. Thus, PAT grew 3.6x YoY and 17.1% QoQ at Rs 555.6 crore. Asset quality improved sequentially as GNPA and NNPA declined 18 bps and 21 bps QoQ to 3.18% and 1.09%, respectively. Total funded assets were up 24% YoY and 5.6% QoQ to Rs 1.45 lakh crore, wherein retail funded assets were up 41% YoY to Rs 96496 crore. Customer deposit growth was at 26.3% YoY to Rs 1.14 lakh crore.
The management has maintained its encouraging growth guidance and said performance is well on track. Healthy business growth, steady asset quality and gradual improvement in CI ratio should propel RoA. We remain positive on the stock.