IDFC FIRST Bank Reports 10% Decline in Q4 Profit to Rs 724 Crore Amid Higher Provisions

IDFC

IDFC FIRST Bank’s Q4 profits witness a 10% drop, settling at Rs 724 crore for the fourth quarter concluded in March 2024, attributing this decline to a significant surge in provisions. This marks a notable decrease from the net profit of Rs 803 crore recorded in the corresponding period of the previous year.

Financial Performance Overview

Total income surged to Rs 9,861 crore, showcasing a noteworthy increase from Rs 7,822 crore reported a year earlier, as stated by IDFC FIRST Bank in its regulatory filing. Notably, interest income saw a commendable growth to Rs 8,219 crore during the reviewed period, compared to Rs 6,424 crore in the same quarter last year.

Strengthened Net Interest Income

The bank highlighted a robust growth in Net Interest Income (NII), which escalated by 24% from Rs 3,597 crore in Q4 FY23 to Rs 4,469 crore in Q4 FY24.

Asset Quality and Provisions

On the asset quality front, the bank witnessed a reduction in gross Non-Performing Assets (NPAs) to 1.88% of gross advances as of March 31, 2024, marking an improvement from 2.51% reported at the end of March 2023. Similarly, net NPAs decreased to 0.60% of the advances from 0.86% in the previous fiscal year.

However, provisions and contingencies experienced a significant uptick, soaring by 50% to Rs 722 crore in Q4FY24, compared to Rs 482 crore in the corresponding period a year ago.

Dividend Declaration and Capital Adequacy

In a notable move, IDFC FIRST Bank refrained from declaring any dividends for FY24 and FY23. Additionally, the bank witnessed a slight decline in its capital adequacy ratio, dropping to 16.11% from 16.82% at the end of the previous fiscal year.

In conclusion, while IDFC FIRST Bank’s financial performance exhibited certain challenges in Q4 FY24, marked by a decline in profits amidst increased provisions, the bank continues to focus on strengthening its fundamentals and maintaining asset quality.

The information provided in this article is for educational and informational purposes only. While efforts have been made to ensure the accuracy and reliability of the information presented, no guarantee is made regarding its completeness, timeliness, or accuracy. Readers are advised to conduct their own research and consult with relevant financial professionals before making any investment decisions or taking any other actions based on the information provided herein. The author and publisher shall not be held responsible for any loss or damages resulting from the use of or reliance on the information presented in this article.

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