IDFC FIRST Bank Reports Strong Yearly Profit Growth

Financial results at a glance

The Board of Directors of IDFC FIRST Bank, in its meeting held today, approved the audited financial results for the quarter and the year ended March 31, 2024.

Yearly Profitability

• Net Profit grew 21% YOY from Rs. 2,437 crore in FY23 to Rs. 2,957 crore in FY24. Excluding trading gains from both the years, the growth in PAT was at 28% YOY.

• Core Pre-Provisioning Operating Profit (PPOP excluding trading gains) grew by 31% YOY from Rs. 4,607 crore in FY23 to Rs. 6,030 crore for FY24.

• Net Interest Income (NII) grew 30% YOY from Rs. 12,635 crore in FY23 to Rs. 16,451 crore in FY24.

• Net Interest Margin increased from 6.05% in FY23 to 6.36% in FY24, based on AUM.

• Fee and Other Income grew by 40% YOY from Rs. 4,142 crore in FY23 to Rs. 5,795 crore in FY24.

• Retail fees constitute 93% of the overall fees for FY24.

• Core Operating income grew 33% from Rs. 16,777 crore in FY23 to Rs. 22,245 crore in FY24.

• Operating Expense grew by 33% YOY from Rs. 12,170 crore in FY23 to Rs. 16,216 crore in FY24.

• Provisions increased 43% YOY from Rs. 1,665 crore in FY23 to Rs. 2,382 crore in FY24.

• The credit cost as % of average funded assets for FY24 was 1.32%.

• RoA stood at 1.10% for FY24; RoE stood at 10.30% for FY24.

Quarterly Profitability

• Net Profit for Q4 FY24 stood at Rs. 724 crore as compared Rs. 803 crore in Q4 FY23. The PAT for Q4 FY 23 was Rs. 701 crore excluding one-time items already called out in Q4 FY23.

• Net Interest Income (NII) grew 24% from Rs. 3,597 crore in Q4 FY23 to Rs. 4,469 crore in Q4 FY24.

• Fee and Other Income grew 36% from Rs. 1,181 crore in Q4 FY23 to Rs. 1,610 crore in Q4 FY24.

• Operating Expenses grew 29% from Rs. 3,436 crore in Q4 FY23 to Rs. 4,447 crore in Q4 FY24.

• Core PPOP (Pre-Provisioning Operating Profit excluding trading gain) for the quarter grew by 22%

from Rs. 1,342 crore in Q4 FY23 to Rs. 1,632 crore in Q4 FY24.

• Provisions increased 50% from Rs. 482 crore in Q4 FY23 to Rs. 722 crore in Q4 FY24.

Deposits & Borrowings

• Total Deposits (including Certificate of Deposits) of the Bank increased by 38.7% YOY from Rs. 1,44,637 crore as of March 31, 2023 to Rs. 2,00,576 crore as of March 31, 2024.

• Customer Deposits increased by 41.6% YOY from Rs. 1,36,812 crore as of March 31, 2023 to Rs. 1,93,753 crore as of March 31, 2024.

• CASA Deposits grew by 31.7% YOY from Rs. 71,983 crore as of March 31, 2023 to Rs. 94,768 crore

as of March 31, 2024.

• CASA Ratio stood at 47.2% as of March 31, 2024.

• Retail Deposits grew by 45.7% YOY from Rs. 1,03,870 crore as of March 31, 2023 to Rs. 1,51,343

crore as of March 31, 2024.

• Retail Deposits as a % of total customer deposits increased from 75.9% as of March 31 2023 to 78.1%

as of March 31, 2024.

• Legacy High-Cost Borrowings reduced from Rs. 17,673 crore as of March 31, 2023 to Rs. 11,809 crore

as of March 31, 2024.

• The Bank opened 135 new branches during FY24 to reach branch count of 944 by March 31, 2024.

Loans and Advances

• Loans and Advances (including credit substitutes) increased by 25.1% YOY from Rs. 1,60,599 crore

as of March 31, 2023 to Rs. 2,00,965 crores as of March 31, 2024.

• Infrastructure Project finance now constitutes only 1.4% of total funded assets as of March 31, 2024.

• Exposure to top 20 single borrowers improved from 7.0% as of March 31, 2023, to 5.7% as of March 31, 2024.

• The incremental Credit to Deposit ratio for FY24 was 76.2%.

• Total Credit to Deposit Ratio improved from 107.0% as of March 31, 2023 to 98.4% as of March 31, 2024.

Assets Quality

• Gross NPA improved 63 bps from 2.51% as of March 31, 2023 to 1.88% of March 31, 2024, improved by 16 bps on QOQ basis.

• Net NPA improved 26 bps from 0.86% as of March 31, 2023 to 0.60% of March 31, 2024, and improved by 8 bps on QOQ basis.

• GNPA of Retail, Rural and SME Finance has improved by 27 bps from 1.65% as of March 31, 2023 to

1.38% as of March 31, 2024, and improved by 7 bps on QOQ basis.

• NNPA of Retail, Rural and SME Finance has improved by 11 bps from 0.55% as of March 31, 2023 to

0.44% as of March 31, 2024, improved by 7 bps on QOQ basis.

• Excluding infrastructure financing, which is in run down mode, the GNPA and NNPA of the Bank is

1.55% and 0.42% respectively as of March 31, 2024.

• SMA-1 & 2 (31-90 DPD which is the pre-NPA stage) in Retail, Rural and SME Finance portfolio is low at 0.85% as of March 31, 2024 (reduced from 0.87% as of March 31, 2023).

• Provision Coverage Ratio (including technical write-off) has increased from 80.29% as of March 31, 2023, to 86.58% as of March 31, 2024.

• Net Stressed Assets (including Net NPA, Net Security Receipts and Net Restructured Assets) as % of total Assets improved from 0.84% as of March 31, 2023 to 0.56% as of March 31, 2024.

Capital Position

• Capital Adequacy of the Bank stood at 16.11% with CET-1 Ratio at 13.36% as on March 31, 2024.

Comments from Managing Director & CEO

Mr. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “It is my delight to share that we have crossed a landmark of Rs. 4,00,000 crore mark of Total Deposits and advances including credit substitutes at the Bank. What is more important for us is that the asset quality continues to be maintained at all-time best of GNPA and NNPA of 1.88% and 0.60% respectively, the lowest NPA in our history. All legacy infrastructure loans are fully factored into the above. Excluding infrastructure loans, the GNPA and NNPA is only 1.55% and 0.42% respectively. All asset quality parameters are stable.”

Our deposit raising franchise is our biggest strength. Our CASA ratio continues to be among the best in the industry at around 47%. Our Incremental Credit to Deposit ratio for FY 24 was low at 76%. The CD ratio has come down to 98.4%, i.e. below 100% for the first time and we expect to further reduce this into FY 25.

The PAT grew 21% YoY to Rs. 2957 cr in FY 24. More important, the core PPOP (excluding trading gain) grew by 31% YOY for the year to cross Rs. 6,000 crores for the first time in our history. Such scale and strong profitability give us the strength to participate in the wonderful opportunities in Indian financial services. We look forward to the future with confidence and optimism.”