IDFC First Bank’s Q4 profit rises 5% on lower provisions; Fraud reached 42%

During the period under review the net profit was Rs. 319 crore, which was Rs. 304 crore was. Bank earlier Rs. 1451 crore as against provisions of Rs. 869 crore was kept separately.

Its net interest margin for the quarter increased to 5.95% from 5.76% in the previous three-month period. NIM was 5.93% in the year-ago quarter.

As a result of the financial impact of the fraud, a year ago Rs. 1812 crore as compared to the bank’s operating profit of Rs. 1059 crores. It recognized the entire amount related to the fraud as an expense in the books for the quarter ended March 31, which led to a sudden increase in operating expenses and a decrease in operating profit.

Due to sale of equity shares in stressed power company Rs. 274 crore loss led to a decline in other income as well. However, the total revenue was earlier Rs. 11308 crore as against Rs. 12183 crores.

Meanwhile its gross advances increased by 20% year-on-year to Rs. 2.84 lakh crore while the gross non-performing assets ratio declined by 26 basis points to 1.61%.

Total deposits increased by 17% to Rs. 2.95 lakh crore, with the share of current and savings banks increasing by 289 basis points to 49.8% in the last one year.

The board had proposed a dividend of 25 paise per share for FY2626 at Rs. 10 showing a dividend of 2.50% on face value.