Private lender IDFC First Bank’s loans and advances rose 21.3% year-on-year to Rs 2.22 billion in the second quarter ended September 2024. The same amount in the September quarter last year was Rs 1,830 crore.
Customer deposits during the quarter increased from Rs 1,64,726 crore in Q2 FY24 to Rs 2,17,738 crore in Q2 FY25, representing a year-on-year growth of 32.2%. The bank is growing deposits at a faster pace than it is making loans as it continues to raise funds to repay traditional debt. The bank says the need for these deposit increases will slow once traditional borrowings are repaid.
Meanwhile, CASA deposits increased by 37.6% year-on-year to Rs 109,345 million. The CASA ratio was 46.4% as of September 2023, while it was 48.9% as of September 2024.
Credit rating agencies CRISIL and CARE have reaffirmed the bank’s long-term credit rating as ‘AA+ stable’.
Meanwhile, IDFC First Bank reported standalone net profit for June 2024 quarter fell 11% year-on-year to Rs 680.65 crore. Net interest income (NII) for the quarter increased by 25.4% to Rs 4,695 million and interest income increased by 28% to Rs 8,789 million.
The lender’s net interest margin (gross and sales of IBPC) decreased from 6.33% in 1QFY24 to 6.22% in 1QFY25. Fees and other income increased by 19% year-on-year from Rs 1,341 billion in 1QFY24 to Rs 1,595 billion in 1QFY25. Total bank deposits increased by 35.8% year-on-year to Rs 209,666 million, similar to the first quarter, while CASA deposits increased by 36.1% year-on-year. 97,692 million rupees. The CASA ratio was 46.6% as of the end of June. Retail deposits, which accounted for 80.2% of total customer deposits, increased by 43.5% from the previous year to 164,001 billion rupees. Loans and advances (including credit substitutes) rose 22% year-on-year to Rs 2,09,361 million at the end of June.
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