The bank reported a pre-tax profit of Rs 107.39 crore in Q4 March 2020 as against a pre-tax loss of Rs 416.72 crore in Q4 March 2019. The bank paid taxes of Rs 36 crore in Q4 March 2020.
The bank posted reported a strong growth in core earnings. Net Interest Income (NII) grew by 40% to Rs 1,563 crore in Q4 March 2020 from Rs 1,113 crore in Q4 March 2019. Net interest margin improved to 4.24% in Q4 March 2020 from 3.03% in Q4 March 2019.
The bank said it was required to make COVID-19 related provision of Rs 25 crore pertaining to accounts where asset classification benefit was given. The Bank provided the entire amount in Q4 March 2020 itself and has additionally taken Rs 200 crore of COVID-19 related provisioning proactively for over-dues of 1-89 days taking total COVID-19 provisions to Rs 225 crore. Including this, the total provisions for Q4 March 2020 stood at Rs 679 crore. Of the Rs 454 crore of normalised provisions, Rs 349 crore pertain to retail loans and Rs 105 crore pertain to wholesale loans.
Provisions & contingencies fell 37.07% to Rs 412.38 crore in Q4 March 2020 over Q4 March 2019. Provision Coverage Ratio (PCR) has improved to 64.53% as of 31 March 2020 as compared to 48.18% as of 31 March 2019 and as compared to 57.34% as of 31 December 2019.
Pre-Provisioning Operating Profit (PPOP) soared by 229% to Rs 787 crore in Q4 March 2020 from Rs 239 crore reported in Q4 March 2019.
On asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 2279.56 crore as on 31 March 2020 as against Rs 2511.36 crore as on 31 December 2019 and Rs 2136.04 crore as on 31 March 2019.
The ratio of gross NPAs to gross advances stood at 2.6% as on 31 March 2020 as against 2.83% as on 31 December 2019 and 2.43% as on 31 March 2019. The gross NPA ratio without considering the impact of moratorium would have been 2.88% as of 31 March 2020.
The ratio of net NPAs to net advances stood at 0.94% as on 31 March 2020 as against 1.23% as on 31 December 2019 and 1.27% as on 31 March 2019. Net NPA ratio without considering the impact of moratorium would have been 1.14% as of 31 March 2020 which would have been still lesser than Net NPA of 1.23% as of 31st December 2019.
Total funded loan assets, gross of inter-bank participation certificates (IBPC), stood at Rs 1,07,004 crore for Q4 FY20, compared to Rs 1,10,400 crore for Q4 FY19. Out of the total book mentioned above, retail loan book increased by 40% to Rs 57,310 crore as on 31 March 2020, compared to Rs 40,812 crore as on 31 March 2019.
Total customer deposits rose 43% year-on-year to Rs 57,719 crore in Q4 March 2020. CASA ratio improved to 31.87% as on 31 March 2020 from 11.40% as on 31 March 2019.
Shares of IDFC First Bank closed 0.26% lower at Rs 18.85 on Friday.
IDFC First Bank provides a range of financial solutions to individuals, small businesses and corporates. As of 31 March 2020, the bank has 464 branches and 356 ATMs across the country.
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