IDFC Bank net profit rises 48.1% to Rs 503 crore
The bank’s bottom line improved aided by stronger operating income and controlled credit costs.
Provisions increased 4.5% year-on-year to Rs 1,398 crore, but fell 3.7% sequentially, indicating stabilising asset quality.
Tax expense rose to Rs 133 crore in line with the higher profit base.Business growth remained strong, with advances rising 21.4% year-on-year to Rs 2.8 lakh crore, led by retail and MSME segments, which accounted for 89% of incremental growth.
Deposits grew 22.9% to Rs 2.82 lakh crore, driven by a 33% rise in CASA deposits to Rs 1,50,350 crore, taking the CASA ratio to 51.6%.Net interest income (NII) increased 12% year-on-year to Rs 5,492 crore, supported by balance-sheet expansion and stable margins.
Other income rose to Rs 2,125 crore, led by a 15.5% increase in fee income and higher trading gains.
Operating income grew 14% to Rs 7,617 crore, while operating expenses rose 13.4% to Rs 5,584 crore, including a one-time Rs 65 crore impact from the new labour code.
Excluding this, expense growth was lower.Asset quality improved, with gross NPAs declining to 1.69% from 1.94% a year earlier.
The bank’s capital adequacy ratio strengthened to 16.22% after the conversion of Rs 7,500 crore of compulsorily convertible preference shares into equity.For the first nine months of the year, the bank’s cost-to-income ratio eased to 71.8%, while return on equity stood at 4.11%, reflecting operating leverage as the retail-led franchise scaled up.
