01 Aug , 2022 By : Kanchan Joshi
Shares of IDFC First Bank rallied more than 8% to Rs40 apiece on the BSE in Monday's opening deals after the bank reported its highest ever net profit of Rs474 crore for the quarter ended June 2022, mainly driven by lower provisioning and higher income, up 38% from the previous quarter of March 2022. The private sector lender had posted a net loss of Rs630 crore in the year-ago quarter.
IDFC First Bank's net interest income (NII), which is the difference between interest earned and interest expended, grew by 26% to Rs2,751 crore in Q1FY23 whereas the net interest margin (NIM) improved to 5.89% from 5.50%.
The asset quality of the bank showed improvement as the gross non-performing assets (NPAs) fell to 3.36% of the gross advances in the June 2022 quarter against 4.61% a year ago. The net NPAs too came down to 1.30% from 2.32%.
“IDFC FIRST Bank’s (IDFCFB) Q1FY23 earnings were much ahead of I-Sec and consensus expectations with PAT growth of 38% QoQ. Core operating profit trajectory at Rs10bn (up 18% QoQ/64% YoY) gives confidence of targeted RoA/RoE, after having delivered RoA," said ICICI Securities in a note.
IDFC First Bank is confident of its guidance of <2>
"We have posted the highest ever profit after tax of Rs474 crore in Q1FY23. Our return on assets has nearly touched 1 per cent and we expect it to rise from here," V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank said.
IDFC First Bank shares are down more than 21% in 2022 (year-to-date or YTD) so far, whereas, the counter has declined about 25% in a year's period.
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