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.
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