IDFC First Bank will hold a meeting of the Board of Directors of the Company on 4 February 2023.

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IDFC First Bank Ltd is down for a fifth straight session today. The stock is quoting at Rs 54.85, down 3.6% on the day as on 13:19 IST on the NSE. The benchmark NIFTY is down around 1.88% on the day, quoting at 17556.4. The Sensex is at 59263.69, down 1.56%.IDFC First Bank Ltd has eased around 1.79% in last one month.Meanwhile, index of which IDFC First Bank Ltd is a constituent, has eased around 5.84% in last one month and is currently quoting at 41647.65, down 3.17% on the day. The volume in the stock stood at 289.22 lakh shares today, compared to the daily average of 294.82 lakh shares in last one month.

The benchmark February futures contract for the stock is quoting at Rs 54.9, down 3.94% on the day. IDFC First Bank Ltd jumped 17.7% in last one year as compared to a 2.66% rally in NIFTY and a 6.99% spurt in the index.

The PE of the stock is 17.97 based on TTM earnings ending December 22.

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The jump in the net profit was mainly driven by strong growth in core operating income.

Total Income jumped 35.9% year on year (YoY) to Rs 7,064.30 crore in the quarter ended 31 December 2022.

Net Interest Income (NII) grew by 27% year on year (YoY) to Rs 3,285 crore in Q3 FY23 as against Rs 2,580 crore reported in Q2 FY22.

Fee and other income surged 50% YoY to Rs 1,117 crore in Q3 FY23 from Rs 744 crore posted in the same quarter last year. Retail fees constituted 91% of the overall fees for the quarter Q3 FY23.

Provisions increased 15% YoY to Rs 450 crore in Q3 FY23 from Rs 392 crore in Q3 FY22. The credit cost (quarterly annualized) as percentage of average funded assets for Q3 FY23 was 1.2%. The provision coverage ratio of the bank has increased to 76.60% as of 31 December 2022 from 67.16% as of 31 December 2021.

On the asset quality side, gross non-performing assets (NPAs) stood at Rs 4,302.64 crore as on 31 December 2022 as against Rs 4,396.19 crore as on 30 September 2022 and Rs 4,456.94 crore as on 31 December 2021.

The ratio of gross NPAs to gross advances stood at 2.96% as on 31 December 2022 as against 3.18% as on 30 September 2022 and 3.96% as on 31 December 2021.

The ratio of net NPAs to net advances stood at 1.03% as on 31 December 2022 as against 1.09% as on 30 September 2022 and 1.74% as on 31 December 2021.

Funded assets (including advances & credit substitutes) increased by 25% YoY to Rs 1,52,152 crore as of 31 December 2022 from Rs 1,21,419 crore as of 31 December 2021.

The bank's CASA Deposits grew 39% YoY to Rs 66,498 crore as on 31 December 2022, as compared to Rs 47,859 crore as on 31 December 2021. CASA Ratio was at 50% as on 31 December 2022, as compared to 51.6% as on 31 December 2021.

The customer deposits increased by 44% to Rs 1,23,578 crore as of 31 December 2022 as compared to Rs 85,818 crore as of 31 December 2021.

Capital adequacy (including profits for 9M FY23) of the bank was strong at 16.06% with CET-1 ratio at 13.49% as on 31 December 2022. Average LCR was strong at 122% for the quarter ending on 31 December 2022.

V Vaidyanathan, managing director and CEO, IDFC First Bank, said, “The deposit franchise continues to grow strong at the bank based on our customer friendly products & services, excellent customer service, strong brand known for corporate governance, ethics and digital innovations.”

“On the retail side, where our bank particularly specializes in, the gross NPA has come down to 1.87% and the net NPA has come down to 0.70%, against the guidance of GNPA and Net NPA of 2.0% and 1.0% respectively. Even at the overall bank level, both the gross and net NPA improved to 2.96% and 1.03% respectively from 3.96% and 1.74% last year same time,” he added.

He further added, “We are confident that our improvement trend would continue going forward as the issues on legacy wholesale book, especially in infrastructure finance, are addressed and the book continue to run down. We have registered our highest ever profit of Rs. 605 crore in Q3-FY23 and our return on equity has now moved firmly into double digits.”

IDFC First Bank was formed by the merger of erstwhile IDFC Bank and Capital First. As on 31 December 2022, the bank has 707 branches and 867 ATMs (including recyclers) across the country.

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Net profit of IDFC First Bank rose 112.47% to Rs 616.61 crore in the quarter ended December 2022 as against Rs 290.21 crore during the previous quarter ended December 2021. Total Operating Income rose 33.48% to Rs 5911.89 crore in the quarter ended December 2022 as against Rs 4429.16 crore during the previous quarter ended December 2021.

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