The earnings were impacted by what the company referred to as “prudent provisions” of Rs 568 crore including Rs 315 crore in MFI business (stress in MFI industry) and Rs 253 crore in one Maharashtra based toll account.
Deposits & borrowings
IDFC First Bank’s customer deposits increased by 32.4% YoY from Rs 1,64,726 crore as of September 30, 2023 to Rs 2,18,026 crore as of September 30, 2024.The retail deposits grew by 37.4% YoY from Rs 1,27,595 crore as of September 30, 2023 to Rs 1,75,300 crore as of September 30, 2024.The CASA deposits grew by 37.5% YoY from Rs 79,468 crore as of September 30, 2023 to Rs. 1,09,292 crore as of September 30, 2024.
The CASA Ratio stood at 48.9% as of September 30, 2024. The retail deposits constitutes 80.4% of total customer deposits as of September 30, 2024. The cost of funds for the bank was 6.46% in Q2-FY25, which improved marginally from last quarter. Excluding the high-cost legacy borrowings, the cost of funds was 6.37% in Q2-FY25.
Loans & advances
The loans & advances including credit substitutes increased by 21.5% YoY from Rs 1,83,236 crore as of September 30, 2023 to Rs 2,22,613 crore as of September 30, 2024. The retail book of the bank grew by 25% YoY while the corporate (non-infrastructure) loans grew by 20% YoY during the quarter.
The bank’s legacy infrastructure book reduced by 21% YoY to Rs 2,654 crore as of September 30, 2024, 1.2% of the total funded assets of the bank.
Microfinance portfolio as percentage of overall loan book reduced from 6.3% in June-2024 to 5.6% in Sep-2024.
Assets Quality
Gross NPA was reported at 1.92% as of September 30, 2024, against 2.11% as of September 30, 2023. Meanwhile, net NPA stood at 0.48% as of September 30, 2024, against 0.68% as of September 30, 2023.
PCR of the bank increased to 75.27% as of September 30, 2024 from 68.18% as of September 30, 2023 and 69.38% as of June 30, 2024.
Fee and other income grew by 18% YoY from Rs 1,376 crore in Q2FY24 to Rs 1,622 crore in Q2 FY25. The operating income grew 21% from Rs 5,380 crore in Q2FY24 to Rs 6,515 crore in Q2 FY25. Operating expense grew by 18% YoY from Rs 3,870 crore in Q2 FY24 to Rs 4,553 crore in Q2 FY25.
Capital Position
• The bank successfully raised Rs. 3,200 crore of fresh equity capital from marquee domestic institutional investors in July 2024.
• The bank also successfully completed merger with IDFC Ltd in October 2024 through which Rs 618 crore of capital have been added to the net-worth whereas the outstanding share count has reduced by 16.64 crore shares.
• Including profits for Q2-FY25 and post the impact of merger as mentioned above, total CRAR as on September 30, 2024 would have been 16.60% with CET-1 ratio of 14.08%.