IDFC Bank net jumps 65% on higher investment income, lower bad loans

Robust other income, including profit on sale of investments, helped IDFC Bank report a 65 per cent jump in net profit in the first quarter ended June 30, 2017.

Net profit in the reporting quarter was at Rs. 438 crore as against Rs. 265 crore in the year ago quarter.

With the bad loans pressure continuing in the reporting quarter, net interest income (difference between interest earned and interest expended) declined 22 per cent at Rs. 388 crore (Rs 498 crore in the year ago period).

Other income soared about three times in the reporting quarter vis-a-vis the year ago quarter to Rs. 649 crore (Rs 213 crore). Other income includes profit of Rs. 284 crore due to sale of investments in the ‘held to maturity’ category.

Total credit (Funded + Non Funded) up by 44 per cent to Rs. 83,157 crore as at June-end 2017, from Rs.57,809 crore as at June-end 2016. Deposits jumped to Rs. 41,959 crore against Rs. 13,029 crore.

There was a write-back of provisions of about Rs. 15 crore as against provisions of Rs. 24 crore towards bad loans in the year ago period.

Gross non-performing assets (GNPAs) went up by Rs. 462 crore during the quarter to stand at Rs. 2004 as at June-end 2017. As at June-end 2016, GNPAs stood at Rs. 3,030 crore.

GNPAs as a percentage of gross advances went down from 6.90 per cent in the June-end 2016 quarter to 4.13 per cent in the June-end 2017 quarter. However, quarter-on-quarter, GNPAs were up from 2.99 per cent as at March-end 2017.

IDFC Bank shares closed at Rs. 59.20 apiece, down 1.82 per cent over the previous close on BSE.