IDFC Bank Q3 profit falls 24% to Rs146 crore

IDFC Bank’s gross non-performing assets (NPAs) fell 22.58% to Rs2,776.67 crore at the end of the December quarter from Rs3,586.70 crore in the same quarter last year. Photo: Mint

IDFC Bank’s gross non-performing assets (NPAs) fell 22.58% to Rs2,776.67 crore at the end of the December quarter from Rs3,586.70 crore in the same quarter last year. Photo: Mint

Mumbai: IDFC Bank Ltd on Friday reported a 23.6% decline in its fiscal third quarter profit due to fall in net interest income (NII), other income and higher other operating expenses.

Net profit fell to Rs146.11 crore for the quarter ended 31 December from Rs191.26 crore a year ago. According to four Bloomberg analysts’ estimates, IDFC was expected to post a net profit of Rs178.80 crore.

NII or the core income a bank earns by giving loans decreased 5% to Rs494.96 crore compared with Rs520.77 crore last year. Other income was at Rs230.79 crore, down 31% from Rs334.20 crore a year ago. Other operating expenses surged 41% to Rs157.73 crore.

Asset quality improved and provisions fell sharply during the quarter. Provisions and contingencies fell 53.14% to Rs108.61 crore from Rs231.76 crore a year ago.

Gross non-performing assets (NPAs) fell 22.58% to Rs2,776.67 crore at the end of the December quarter from Rs3,586.70 crore in the same quarter last year.

As a percentage of total loans, gross NPAs stood at 5.62% as compared to 3.92% in the previous quarter and 7.03% in the year-ago quarter. Net NPAs were at 2.52% in the December quarter compared to 1.61% in the previous quarter and 2.57% in the same quarter last year.

Advances rose 27.51% from a year ago to Rs6.31 trillion. Deposits rose 10.1% to Rs6.99 trillion.

At 3pm, IDFC Bank was trading at Rs58 on the BSE, down 0.34% from its previous close, while benchmark Sensex index rose 0.56% to 35,456.23 points.

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