IDFC FIRST Bank FY23 Profit After Tax highest-ever at Rs. 2,437 Crore in FY23

Telugu super news,Mumbai, April 30th, 2023:


Business update

ParameterUnitMarch 31, 2022March 31, 2023Growth
Customer DepositsRs. Crores93,2141,36,812Up 47%
CASA Ratio%48.44%49.77%Up 133 bps
Loans & Advances*Rs. Crores1,29,0511,60,599Up 24%

Asset Quality

Parameters (%)March 31, 2022March 31, 2023Change
Gross NPA3.70%2.51%Improved by 119 bps
Net NPA1.53%0.86%Improved by 67 bps
Bank level PCR ^70.29%80.29%Up 1,000 bps
Retail Gross NPA2.63%1.65%Improved by 98 bps
Retail Net NPA1.15%0.55%Improved by 60 bps
Retail PCR ^69.59%82.43%Up 1,284 bps

·       Bank’s Gross and Net NPA excluding the infrastructure financing book which is a rundown mode, is

1.84% and 0.46% respectively.


·       Net Profit for the year stood at Rs. 2,437 crore compared to Rs. 145 crore in FY22. The quarterly net profit grew 134% YOY from Rs. 343 crore in Q4-FY22 to Rs. 803 crore in Q4-FY23 driven by strong growth in core operating income.

·       In Q4-FY23, the Bank had trading gains of Rs. 216 crore and the Bank utilized Rs. 79 crore to increase the provision coverage ratio. Adjusting for these one time items, the net profit of the Bank would have been Rs. 701 crore for Q4-FY23. The Core ROE on this basis would have been 12.3% which has increased from ROE of 6.67% for Q4 FY 22.

·       Net Interest Income (NII) for the year grew 30% YOY, from Rs. 9,706 crore in FY22 to Rs. 12,635 crore

in FY23. NII grew 35% YOY from Rs2,669 crore in Q4-FY22 to Rs. 3,597 crore in Q4-FY23.

·       Fee and other Income for the year grew by 54% YOY from Rs. 2,691 crore in FY22 to Rs. 4,142 crore in FY23. It grew 40% YOY from Rs841 crore in Q4-FY22 to Rs. 1,181 crore in Q4-FY23. Retail fees constituted 91% of the overall fees for the quarter Q4-FY23.

·       Core Operating Profit (NII plus Fees less Opex, excluding trading gains) for the year grew 67% YOY from Rs. 2,753 crore in FY22 to Rs. 4,607 crore in FY23. For the quarter, the core operating profit grew by 61% YOY from Rs. 836 crore in Q4-FY22 to Rs. 1,342 crore in Q4-FY23.

·       Provisions for the year decreased by 46% YOY from Rs. 3,109 crore in FY22 to Rs. 1,665 crore in FY23.

Credit cost for FY23 was 1.16% against the guidance of 1.5%.

·       ROA improved from 0.08% in FY22 to 1.13% in FY23.

·       ROE for FY 23 improved to 10.95% from 0.75% in FY22.

·       For the exit quarter, after adjusting for one-time items, RoA increased from 0.76% in Q4-FY22 to

1.23% in Q4-FY23. The ROE increased from 6.67% in Q4 FY 22 to 12.30% in Q4 FY 23.

Comments from Managing Director & CEO

Mr. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “We have built a strong foundation for the bank with a diversified customer deposits and diversified loan book.

More importantly, I’m happy to share that the asset quality remains high. On the retail side, the Gross NPA is 1.65% and the net NPA is at 0.55%, against the guidance of Gross NPA of 2.0% and NNPA of less than 1%. If we exclude the infrastructure financing book, which is anyway in run-down mode, the Gross NPA and Net NPA would be 1.84% and 0.46% at the overall bank level.”

We have registered our highest ever quarterly profit of Rs. 803 crores in Q4 FY 23 and the highest ever yearly profit of Rs. 2,437 crores in FY23.

We sincerely thank all our stakeholders for their goodwill towards us even while we were building the foundation with a strong deposit franchise and CASA of nearly 50%. Now the bank is firmly into profits, and we believe we can deliver strong financial performance from here on. The Bank would continue to focus on building a strong culture of customer friendliness, customer service, ethics, and high levels of corporate governance in the bank”.

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