IDFC First Bank recently announced that it has registered a net loss to the tune of Rs.218 crore for the quarter that ended on 31 March 2019. In comparison, the lender registered a profit after tax (PAT) of Rs.41.93 crore in the year-ago period.
For the entirety of FY18-19, IDFC First Bank registered a net loss of around Rs.1,944 crore, in comparison to a net profit of Rs.859.3 crore in the fourth quarter of FY17-18. The lender said that its figures for FY18-19 included an accelerated goodwill amortisation on merger of around Rs.2,599 crore and tax credits to the tune of Rs.1,351 crore. The lender said that if not for the one-time tax credit and goodwill amortisation, the bank would have registered a net loss of Rs.696 crore for the year.
IDFC First Bank came into being after the merger of IDFC Bank and Capital First in December 2018. For the last quarter of FY18-19, the lender registered a net interest income of Rs.1,113 crore, in comparison to a net interest income of Rs.453.24 crore in the year-ago period. The lender’s net interest margin (NIM) in the fourth quarter of FY19 was 3.03%, as against an NIM of 1.58% in the year-ago period.
Mr. V. Vaidyanathan, the MD and CEO of IDFC First Bank, said that the bank has already started its growth and transformation journey. He added that IDFC First Bank is currently focused on growing its retail asset book, improving margins, and diversifying the balance sheet, among other things.
The lender’s gross NPA stood at 2.43% of the gross advances during the period under review, as compared to a gross NPA of 3.31% in the fourth quarter of FY19. The bank’s net NPA stood at 1.27% as on 31 March 2019, as against a net NPA of 1.69% in the year-ago period.
Source: The Hindu Business Line