IDFC Bank, one of India’s newest universal banks, reported a 60 percent jump in standalone net profit at Rs 264.75 crore for the three months to June 30, 2016, against Rs 165.06 crore in the previous quarter. Total income for the bank in the first quarter of FY17 rose 12 percent to Rs 2,188.28 crore, against Rs 1,953.20 crore in the fourth quarter of FY16. (IDFC Bank does not have any year-ago comparable data, as it started banking operations only on October 1, 2015. The financial results for the March 2016 quarter includes the period between October 2015 and March 2016.)
In the earnings announced on Tuesday, net interest income—the difference between interest earned and interest expended—rose 25 percent to Rs 515.2 crore, against Rs 411.5 crore in the previous quarter.
Gross non-performing loans (NPL) for the bank as on June 30, 2016 were at Rs 3,030 crore, which as a percentage of gross advances stood at 6.1 percent, compared with 6.2 percent in the March 2016 quarter. The net NPL for the bank stood at Rs 1,111 crore. Net NPLs as a percentage to net advances was at 2.3 percent (2.4 percent in the March quarter), a statement from the bank said.
Deposits grew 59 percent to Rs 13,029 crore (CASA at Rs 869 crore and term deposits at Rs 12,160 crore). The IDFC Bank stock rose 3.25 percent to Rs 52.65 on BSE, after the earnings were announced.
As on June 30, 2016, IDFC Bank had 65 branches, 14 ATMs and 330 Micro ATMs. In July, IDFC Bank acquired South India-based microfinance institution South Grama Vidiyal, in a bid to enhance its network and reach. Grama Vidiyal, a wholly owned subsidiary of IDFC Bank, now acts as its business correspondent.
Earlier this year, the trio of IDFC Bank, Sun Pharma founder Dilip Shanghvi and Telenor Financial Services decided not to pursue plans for a payments bank, for which the Reserve Bank of India had given them an ‘in-principle’ nod last year.