IDFC FIRST Bank Q4 profit falls 10% to Rs 724 cr on higher provisions

New Delhi: IDFC FIRST Bank on Saturday reported a 10 per cent decline in net profit at Rs 724 crore for the fourth quarter ended March 2024 due to a substantial jump in provisions.

The lender had earned a net profit of Rs 803 crore in the year-ago period.

Total income rose to Rs 9,861 crore from Rs 7,822 crore a year ago, IDFC FIRST Bank said in a regulatory filing.

Interest income grew to Rs 8,219 crore during the period under review, from Rs 6,424 crore in the corresponding quarter a year ago.

Net Interest Income (NII) grew 24 per cent from Rs 3,597 crore in Q4 FY23 to Rs 4,469 crore in Q4 FY24, it said.

On the asset quality side, the bank's gross Non-Performing Assets (NPAs) reduced to 1.88 per cent of gross advances as of March 31, 2024, from 2.51 per cent by the end of March 2023.

Net NPAs also came down to 0.60 per cent of the advances from 0.86 per cent at the end of 2024.

However, provisions and contingencies increased by 50 per cent to Rs 722 crore in Q4FY24 as compared with Rs 482 crore a year ago.

The bank did not declare any dividend for FY24 and FY23.

The capital adequacy ratio of the bank declined to 16.11 per cent from 16.82 per cent at the end of the previous fiscal.