IDFC Bank Q1 Net Profit Rises 60%

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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.

Key Financials

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%

Key Ratios

    
    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%.

Asset Quality

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%.

Network

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

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