Financialresultsata glance

TheBoardofDirectorsofIDFCFIRSTBank,initsmeetingheldtoday,approvedtheunauditedfinancialresults for the quarter and nine months ended December 31, 2023.

Profitability

·NetProfitgrew18%YOYfromRs.605croreinQ3-FY23toRs.716croreinQ3-FY24.

·Net Interest Income (NII)grew30%YOY fromRs.3,285 crorein Q3-FY23 toRs. 4,287 crorein Q3-FY24.

·Net interest Margin(gross of IBPC and sell-down) was6.42%in Q3-FY24 as compared to6.13%in Q3-FY23 and6.32%in Q2-FY24.

·Fee and Other Incomegrew by32%YoY fromRs.1,117 crorein Q3-FY23 toRs. 1,469 crorein Q3- FY24.Retail feesconstitute93%of the overall fees for the quarter Q3-FY24.

·CoreOperatingincome(NIIplusFees,excludingtradinggains)grew31%fromRs.4,402croreinQ3- FY23 toRs. 5,755 crorein Q3-FY24.

·OperatingExpensegrewby33%YoYfromRs.3,177croreinQ3-FY23toRs.4,241croreinQ3-FY24.

·CoreOperatingProfit(preprovisionoperatingprofitexcludingtradinggains)grewby24%YOYfrom

Rs.1,225croreinQ3-FY23toRs.1,515croreforQ3-FY24.

·Provisionsincreased45%YOYfromRs.450croreinQ3-FY23toRs.655croreinQ3-FY24.Thecredit cost(quarterly annualized) as % of average funded assets for 9M-FY24 was1.26%.

·RoA(annualized)stoodat1.16%for9M-FY24.

·RoE(annualized)stoodat10.67%in9M-FY24.

Deposits& Borrowings

·CustomerDepositsincreased by42.8%YoY fromRs. 1,23,578croreasofDecember 31, 2022toRs. 1,76,481 croreas of December 31, 2023.

·CASA Depositsgrew by28.6%YoY fromRs. 66,498 croresas of December 31, 2022 toRs. 85,492croreas of December 31, 2023. CASA Ratio stood at46.8%as of December 31, 2023.

·Retaildepositsgrewby46.6%YoYfromRs.95,107croresas of December31, 2022toRs.1,39,431

croreasofDecember31,2023.

·Retaildepositsconstitutes79%oftotalcustomerdepositsasofDecember31,2023.

·LegacyHighCostBorrowingsreducedfromRs.18,762croresasofDecember31,2022toRs.13,607 croreas of December 31, 2023.

Funded Assets

·Funded assets(including advances & credit substitutes) increased by24.5%YoY fromRs. 1,52,152 croreas of December 31, 2022 toRs. 1,89,475 croresas of December 31, 2023.

·TheBankcontinuestowinddowninfrastructurefinancingasperthestatedstrategyandnow constitutes only1.6%of total funded assets as of December 31, 2023.

·Exposuretotop20singleborrowersimprovedto5.93%asofDecember31,2023.

·The Credit to Deposit Ratioimproved further from109.18%as of December 31, 2022 to101.41% croreas of December 31, 2023. Theincremental Credit to Deposit ratiofor quarter 9M-FY24 was79.89%.

AssetsQuality

·GrossNPA(GNPA)ofthebankhasimprovedto2.04%asofDecember31,2023from2.96%of December 31, 2022.

·NetNPA(NNPA)ofthebankhasimprovedto0.68%asofDecember31,2023from1.03%of December 31, 2022.

·GNPAoftheRetail,RuralandSMEFinancehasimprovedto1.45%asofDecember31,2023from

1.87%ofDecember31,2022.

·NNPAoftheRetail,RuralandSMEFinancehasimprovedto0.51%asofDecember31,2023from

0.70%ofDecember31,2022.

·ExcludingtheinfrastructurefinancingbookwhichtheBankisrunningdown,theGNPAandNNPA

oftheBankwouldhavebeen1.66%and0.47%respectivelyasofDecember31,2023.

·SMA-1andSMA-2(31-90DPDwhichisthepre-NPAstage)inRetail,RuralandSMEFinanceportfolio has reduced from0.87%as of March 31, 2023, to0.85%as of December 31, 2023.

·Collection efficiencyfor urban retail business (excluding prepayments and EMI arrears) in current bucket continues to remain high at99.6%.

·Provision coverage ratio(including technical write-off) of the bank hasincreasedto84.68%as of December 31, 2023 from76.60%as of December 31, 2022.

·Standardrestructuredbookas%oftotalfundedassetsimprovedto0.35%atDecember31,2023.

CapitalPosition&Liquidity

·CapitalAdequacyoftheBankwasstrongat16.73%withCET-1Ratio at13.95%asonDecember31, 2023.The Bank raised fresh equity capital of Rs. 3,000 crore in 1st week of October 2023.

·AverageLCRwasstrongat121%forthequarterendingonDecember31,2023. 

Guidance2.0forthenext 5Years (FY2024to FY2029)

·TheBankhasexceeded,met,orismostlikelytomeetmosttargetsasprovidedunderGuidance 1.0.

·We have a strong proven business model that is incrementally very profitable. Basis this model, we coulddonecessaryinvestmentsandexpensesforbuildingtheBank,andyetgrowprofitabilityduring FY 19-24. We have far greater visibility while providing Guidance 2.0 as compared to visibility of at time of Guidance 1.0

·Wearebuildingaworldclassbankwithhighestlevelsofcorporategovernance,aconsistentbalance sheetgrowthof~20%,withstrongassetquality ofGNPA<1.5% andnet NPAof<0.4%, withROEof 17-18%, with contemporary technology, unique business model, and high levels of CustomerCentricity.

Guidance2.0(FY24-29)isas follows:

*No.isforQ3-19, **No.isfor 9M-24

CommentsfromManagingDirector&CEO

Mr.VVaidyanathan,ManagingDirectorandCEO,IDFCFIRSTBank,said,

“Wearehappytosharethatourdepositscontinuetogrowstronglyat43%YOY,andourCASAratiocontinues to bestrong at46.8%.Ourasset quality continuesto improve.OntheRetail,Rural & SME business, which is a significant part of our business, the Gross NPA andNet NPA continue to remain low and are at 1.45% and 0.50% respectively as of 31^stDecember 2023. We will remain very watchful on this front all the time.

WehaveregisteredprofitofRs.2,232croresin9M-FY24,representingagrowthof37%overPATofRs.1,635 crores in 9M-FY23.

AtthetimeofthemergerofIDFCBankandCapitalFirst,theBankprovidedGuidance1.0.Asof31^stDecember 2023,IDFCFIRSTBankhascompletedexactly5yearspostthemergerandhenceweareprovidingGuidance

2.0 (FY 24-29), with greater visibility as compared to the visibility we had at time of providing Guidance 1.0. We are likely to meet most targets under Guidance 1.0”