[ad_1]
IDFC First Bank zoomed 10 per cent to a high of Rs 41.30 in intra-day trades on Monday after the private sector bank reported a strong set of earnings in Q1FY23.
For the quarter ended June 2022, the bank recorded its highest-ever standalone profit at Rs 474.33 crore as against a net loss of Rs 630 crore in corresponding quarter a year ago. Net interest income grew by 26 per cent to Rs 2,751.1 crore YoY, with 39 bps YoY improvement in net interest margin at 5.89 percent.
At 10:20 AM, the stock quoted 9.2 per cent higher at Rs 41 with heavy volumes of around 66.09 lakh shares on the BSE as against its two-week daily average volumes of around 19.10 lakh shares. Meanwhile, the S&P BSE Sensex was up 0.6 per cent at 57,933, and the BSE Bankex advanced 0.3 per cent.
The stock has soared nearly 43 per cent in the last seven trading weeks from a low of Rs 28.95. In July alone, the stock gained 19.4 per cent, out-performing the BSE benchmark with a wide margin, which was up 8.6 per cent.
Further, the bank reported 21 per cent YoY surge in deposits at Rs 1,02,868 crore in the quarter under review.
The asset quality at the bank level, both GNPA and NNPA, too improved by 125 bps and 102 bps at 3.36 per cent 1.30 per cent, respectively, on a YoY basis.
According to a release issued by IDFC First Bank, V Vaidyanathan, Managing Director and CEO of the bank said, “We have built a strong foundation for the bank, on the basis of which we can grow the loan book, deposits and profits comfortably from here on in a steady manner.
We have posted the highest-ever profit after tax of Rs 474 crore in Q1FY23. Our return on assets has nearly touched 1 per cent and we expect it to rise from here. We are happy that even post the pandemic, our retail Gross NPA and Net NPA has reverted to 2.1 per cent and 0.9 per cent, respectively which is our long-term experience. More importantly, the retail asset quality has normalized sooner than our earlier guidance of March 2023, he added.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link
