The Board of Directors of IDFC Bank today approved the financial results for the first quarter ended June 30, 2016. The accounts have been subjected to a ‘Limited Review’ by the statutory auditors of the Bank.
Performance at a glance: Q1 FY 2017 v/s Q4 FY 2016
- Net profit for the quarter stands at Rs. 265 crore, up 60%
- Operating Income grew 28% at Rs. 712 crore, with Non-Interest Income at Rs. 197 crore
- Funded Credit (Net Advances + NCDs) grew 4% to Rs. 50,410 crore as on June 30, 2016, from Rs. 48,474 crore as on March 31, 2016
- Total Credit (Funded Book + Non Funded Book) grew 7% to Rs. 57,470 crore as on June 30, 2016 from Rs. 53,580 crore as on March 31, 2016
- Deposits grew 59% stood at Rs. 13,029 crore (CASA at Rs. 869 crore and Term Deposits at Rs. 12,160 crore)
- Well Capitalised Bank with total Capital Adequacy Ratio of 20.39% and Tier 1 CAR of 19.91% under Basel III.
Balance Sheet (Rs. Crore)
Particulars Jun-16 Mar-16 % Growth Shareholders' Funds 13,903 13,633 2% Borrowings 70,667 57,160 24% Deposits 13,029 8,219 59% Other liabilities and provisions 4,095 4,204 -3% Total Liabilities 1,01,694 83,216 22% Cash and Bank Balances 3,799 2,904 31% Investments 47,268 29,729 59% Advances 45,914 45,699 0.5% Fixed and Other Assets 4,713 4,884 -4% Total Assets 1,01,694 83,216 22%
Income Statement (Rs. Crore)
Particular Q1 FY17 Q4 FY16 % Growth Operating Income 711.7 554.5 28% Net Interest Income 515.2 411.5 25% Non-Interest Income 196.5 143.0 37% Operating Expenses 276.8 294.7 -6% Pre-Prov Op Profit (Ppop) 434.9 259.8 67% Provisions & Contingencies 23.6 11.9 98% Profit Before Tax 411.3 247.9 66% Tax 146.5 82.9 77% Profit After Tax 264.8 165.0 60%
Particular Q1 FY17 Q4 FY16 Return on Assets 1.1% 0.8% Return on Equity 7.7% 4.9% Book Value Per Share (') 41.0 40.2 NIMs 2.4% 2.1% Capital Adequacy Ratio 20.4% 22.0% Of which Tier I 19.9% 21.5% Gross NPL (% of Loans) 6.1% 6.2% Net NPL (%) 2.3% 2.4%
Net Worth and Capital Adequacy
Net worth of the Bank stood at Rs. 13,903 crore as on June 30 2016, as compared to Rs. 13,633 crore on March 31, 2016. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 20.39% as at the end of the quarter. Tier 1 Capital adequacy ratio stood at 19.91%.
The Gross NPL and Net NPL of the Bank as at the end of the Quarter stood at Rs. 3,030 crore and Rs. 1,111 crore respectively. Gross NPL as a percentage to Gross Advances stood at 6.1% and Net NPL as a percentage to Net Advances at 2.3%.
As on June 30, 2016, IDFC Bank had 65 branches (of which 50 branches were in Bharat Banking, 11 in Consumer Banking and 8 in Commercial & Wholesale Banking), 14 ATMs and 330 Micro ATMs.
It expanded its network in Madhya Pradesh and expanded into Karnataka and Andhra Pradesh. To deepen financial inclusion, the bank is placing a special focus on segments such as marginal farmers, micro enterprises and the self-employed.
In July 2016, IDFC Bank signed a share purchase agreement to acquire 100% of Grama Vidiyal Micro Finance, one of the largest microfinance institutions in the country. Upon completion of the acquisition, Grama Vidiyal will be a wholly-owned subsidiary of IDFC Bank. The acquisition will give IDFC Bank immediate access to 1.2 million rural and semi-urban households and Grama Vidiyal’s network of 319 locations across 65 districts of Tamil Nadu, Kerala, Karnataka, Pondicherry, Maharashtra, Gujarat and Madhya Pradesh will act as BC centres to IDFC Bank.
IDFC Bank continued to strengthen its suite of retail offerings during the quarter. It introduced home loan products and a range of specialized digital offerings for customers in the business banking segment.
Under Commercial and Wholesale Banking, the Bank diversified its relationships further in the non-infrastructure segment by offering a wider range of solutions, while continuing to expand and cater to new clients in the infrastructure segment.
Awards & Recognition
IDFC Bank won the following awards:
- Award for “Innovative Micro ATM product” at the Business Mobility Summit 2016
- “The Innovators 2016” for Corporate Internet Banking Platform – BXP, by Global Finance magazine
- “Best in Class Technologies – Best Simulation Solution” and “Best Training Initiatives for Banking Sector” by World HRD Congress