IDFC First Bank Q3 Results: Core income grows 12% from last year, asset quality stable

IDFC First Bank Ltd. reported its third quarter earnings on Saturday, January 31.

The lender reported a net profit of ₹502.5 crore, up 48% from the previous year's ₹339.4 crore.

Its net interest income (NII) increased 12% to ₹5,492.4 crore from ₹4,902 crore in the third quarter of the previous year.

IDFC First Bank's gross non-performing assets (NPA) contracted to 1.69% from 1.86% in the previous quarter.

Meanwhile, its net NPA increased marginally to 0.53% from 0.52% sequentially.

In absolute terms, IDFC First Bank's gross NPA declined to ₹4,614 crore from ₹4,841 crore in the second quarter of this fiscal.

Its net NPA increased to ₹1,427 crore from ₹1,345.4 crore sequentially.

IDFC First Bank said provisions for the quarter reduced by 3.7% sequentially from ₹1,452 crore to ₹1,398 crore.

"We are seeing a strong business momentum across all our main lines of businesses, including lending, deposits, wealth management, transaction banking, etc.," V Vaidyanathan, the MD and CEO of IDFC First Bank said.

Vaidyanathan added that the lender expects cost of funds to further drop because of the recent revision in savings rates, which will enable it to expand its lending franchise.

Shares of IDFC First Bank ended the previous session flat at ₹83.5 apiece. The stock has gained 32% in the past year.

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