IDFC FIRST Bank’s Strong Q1 FY25 Performance: Deposits Up 35.8%, Loans Grow 22%, and Improved Asset Quality

Please find below the financial highlights of the unaudited quarterly results of IDFC FIRST Bank for the quarter ended June 30, 2024: Deposits & Borrowings – Total Deposits of the Bank increased by 35.8% YOY to Rs. 2,09,666 crore as of June 30, 2024, from Rs. 1,54,427 crore as of June 30, 2023. – Customer Deposits increased by 37.8% YOY to Rs. 2,04,572 crore as of June 30, 2024, from Rs. 1,48,474 crore as of June 30, 2023.

– CASA Deposits grew by 36.1% YOY to Rs. 97,692 crore as of June 30, 2024, from Rs. 71,765 crore as of June 30, 2023, with a CASA Ratio of 46.6% as of June 30, 2024.

– Retail Deposits grew by 43.5% YOY to Rs. 1,64,001 crore as of June 30, 2024, from Rs. 1,14,272 crore as of June 30, 2023, constituting 80.2% of total customer deposits. – Legacy High Cost Borrowings reduced from Rs. 16,055 crore as of June 30, 2023 to Rs. 10,084 crore as of June 30, 2024, and the Bank opened 11 new branches during Q1 FY25 to reach a branch count of 955 by June 30, 2024.

Loans and Advances – Loans and Advances increased by 22.0% YOY to Rs. 2,09,361 crore as of June 30, 2024, from Rs. 1,71,578 crore as of June 30, 2023. – Exposure to top 20 single borrowers improved from 7.0% as of June 30, 2023 to 5.4% as of June 30, 2024, and the Credit to Deposit Ratio improved from 107.3% as of June 30, 2023 to 98.1% as of June 30, 2024. Asset Quality – Gross NPA of the bank improved from 2.17% as of June 30, 2023 to 1.90% as of June 30, 2024, and Net NPA improved from 0.70% as of June 30, 2023 to 0.59% as of June 30, 2024.

– Gross NPA of the Retail, Rural and MSME Finance improved from 1.53% as of June 30, 2023 to 1.46% as of June 30, 2024, while Net NPA improved from 0.52% as of June 30, 2023 to 0.46% as of June 30, 2024.

– SMA-1 and SMA-2 in Retail, Rural and MSME Finance portfolio continues to be low at 1.01%, but increased from 0.85% as of March 31, 2024 to 1.70% as of June 30, 2024.

– Provision coverage ratio (excluding technical write-off) of the bank has increased from 68.11% as of June 30, 2023 to 69.38% as of June 30, 2024. Profitability

– Net Interest Income (NII) grew 25% YOY from Rs. 3,745 crore in Q1 FY24 to Rs. 4,695 crore in Q1 FY25.

– Operating Expense grew by 21% YOY from Rs. 3,659 crore in Q1 FY24 to Rs. 4,432 crore in Q1 FY25.

– Net Profit de-grew 11% YOY from Rs. 765 crore in Q1 FY24 to Rs. 681 crore in Q1 FY25. Excluding trading gains from respective period, the degrowth in profit was at 7% YOY. Capital Position

– Capital Adequacy including profit for Q1-25 was strong at 15.88% with CET-1 Ratio at 13.34% as on June 30, 2024. Including Capital raised in July 2024, the Capital Adequacy Ratio as on June 30, 2024 would be 17.21%, with CET-1 ratio at 14.67%. Comments from Managing Director & CEO Mr. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said,