IDFC FIRST Bank registers PAT at Rs 2,437 Cr in FY23

Mumbai, Apr 29 IDFC First Bank witnessed strong growth in earnings for the fourth quarter of FY23. The lender's net profit in Q4FY23 more than doubled to ₹803 crore which is the highest ever in a quarter, while recording double-digit growth in net interest income (NII). At the bank, customers' deposits and loan books stood strong.

V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “On the retail side, the Gross NPA is 1.65% and the net NPA is at 0.55%, against the guidance of Gross NPA of 2.0% and NNPA of less than 1%. If we exclude the infrastructure financing book, which is anyway in run-down mode, the Gross NPA and Net NPA would be 1.84% and 0.46% at the overall bank level.”

We have registered our highest ever quarterly profit of Rs. 803 crores in Q4 FY 23 and highest ever yearly profit of Rs. 2,437 crores in FY23, he said.

We sincerely thank all our stakeholders for their goodwill towards us even while we were building the foundation with a strong deposit franchise and CASA of nearly 50%. Now the bank is firmly into profits, and we believe we can deliver strong financial performance from here on. The Bank would continue to focus on building a strong culture of customer friendliness, customer service, ethics, and high levels of corporate governance in the bank, he added”.

In Q4FY23, the bank’s net profit skyrocketed by 134% to ₹803 crore as against a profit of ₹343 crore in Q4 of the previous fiscal. Overall, in FY23, PAT jumped by multi-fold to ₹2,437 crore versus a meager ₹145 crore in FY22.

Furthermore, NII grew 35% YOY from ₹2,669 crore in Q4-FY22 to ₹3,597 crore in Q4-FY23. For the year, NII climbed by 30% YoY to ₹12,635 crore versus ₹9,706 crore in FY22.

Between January to March 2023 period, the bank posted trading gains of ₹216 crore and it utilized ₹79 crore to increase the provision coverage ratio. Adjusting for these one-time items, the net profit of the bank would have been ₹701 crore for Q4-FY23. The Core ROE on this basis would have been 12.3% which has increased from an ROE of 6.67% for Q4 FY 22.

IDFC First's MD added, “We have built a strong foundation for the bank with a diversified customer deposits and diversified loan book."

As of March 31, 2023, the bank's customer deposits soared by 47% to ₹1,36,812 crore as against ₹93,214 crore as of March 31, 2022. Loans and advances increased by 24% to ₹1,60,599 crore as of March 31, 2023, as against ₹1,29,051 crore as of March 2022 end.