IDFC First Bank announced Q2FY23 results: NII grew by 32% on YoY basis to Rs. 3,002 crore in Q2FY23. Net Interest Margin improved by 15 bps on YoY basis to 5.98% in Q2FY23. Fee and Other Income grew by 44% YoY to Rs. 945 crore in Q2FY23. Core operating income (excl. trading gains) grew by 35% YoY to Rs. 3,947 crore in Q2FY23 Core operating profit (excl. trading gains) grew by 84% YoY to Rs. 1,052 crore in Q2FY23 Provisions were lower by 11% YoY basis at Rs. 424 crore in Q2FY23 at 1.2% (annualized) of average funded assets. Net Profit grew by 266% on YoY basis to Rs. 556 crore in Q2FY23. ROA (annualized) reached 1.07% and ROE (annualized) reached 10.13% in Q2FY23 Mr. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “We have built a strong foundation at the bank over the past three years. This includes a strong retail liabilities franchise with strong CASA ratio of 50% and great service standards. Our philosophy of ethical banking and high levels of corporate governance are also our pillars. I believe we can grow from here on in a stable manner.” “Our profit after tax has grown consistently for the 5th consecutive quarter, reflecting the resilience of our franchise. I am happy to share that we have posted the highest-ever profit in the history of the Bank this quarter at Rs. 556 crore, driven by strong growth in core operating income. We are confident of sustaining this trend as the new lines of businesses launched, such as cash management, wealth management, FASTag, credit cards, are at the start of the journey and have immense potential going forward. “ “On the asset quality front, we have a long track record of 12 years of maintaining our retail gross NPA and net NPA at around 2% and 1% respectively through the economic slowdown in 2010-2014, Demonetisation in 2016, GST implementation in 2017, and ILFS crisis in 2018-19. I am happy to share that even after COVID, the retail asset quality has reverted to long term sustainable levels with GNPA of 2.03% and NNPA of 0.73% as of September 30, 2022.” Going forward, we are optimistic about maintaining our growth momentum on the basis of strong foundations we have built at the Bank.” Result PDF