Asset Quality Indicators: IDFC First Bank   201812$ 201809 201806 201803 201712 Variation QoQ$ YTD$ YoY$ Gross NPA (Rs Crore) 1670.85 895.50 1774.47 1779.06 2776.67 - - - Net NPA (Rs Crore) 796.02 321.18 881.08 891.16 1206.28 - - - % of GNPA 1.97 1.63 3.24 3.31 5.62 - - - % of NNPA 0.95 0.59 1.63 1.69 2.52 - - - % CRAR - Basel III 16.51 19.18 19.25 18.00 19.15 - - - % CRAR - Basel III - Tier I 16.14 18.80 18.89 17.67 18.84 - - - Variation in basis points for figures given in percentages and in % for figures in Rs crore

$ figures for Q3FY2019 related to merged entity and not comparable with earlier periods

Business Highlights:

The total Balance Sheet size of the bank was Rs 156916 crore as of 31 December 2018.

The Gross Funded Assets stood at Rs 104660 crore, out of which Gross Funded Assets in the Retail segment were at Rs 36252 crore, contributing 34.62% to the total Funded Assets. The Gross Funded Assets in the Wholesale segment stood at Rs 56809 crore, out of which, funded assets in Infrastructure segment was at Rs 22710 crore which gradually came down every quarter for the last four quarters.

Total deposits of the Bank as of 31 December 2018, were Rs 61914 crore, out of which CASA Deposits were at Rs 6421 crore, contributing 10.37% to the total deposits and 4.92% to the total borrowing & deposits book. The Time Deposits of the Bank were at Rs 33182 crore, out of which Retail Time Deposits stood at Rs 7605 crore as of 31 December 2018.

The Bank maintained a statutory investment book of Rs 21456 crore and Rs 22018 crore of other investment book as of 31 December 2018.

As of 31 December 2018, the Bank's distribution network comprised 206 bank branches and 140 ATMs. The Bank also has 102 asset branches, 354 rural financing branches and 100 business correspondence centers. Through this network, the Bank is servicing its customers across 530 districts in 30 States and Union Territories.

The networth of the Bank was at Rs 18376 crore as of 31 December 2018.

Book Value per share stood at Rs 38.4 per share at end December 2018, while adjusted book value (net of NNPA) stood at Rs 35.8 per share at end December 2018.

YTD Financial Performance:

For the nine months ended December 2018 (9MFY2019), the bank posted net loss of Rs 1726.15 crore. The net interest income stood at Rs 2086.23 crore, while non-interest income was at Rs 622.36 crore in 9MFY2019. The expense ratio stood at 79.0% in 9MFY2019. The operating expenses were Rs 2139.80 crore and provision were Rs 847.91 crore in 9MFY2019. After amortization of goodwill, the pre-tax loss came in at Rs 2878.47 crore in 9MFY2019. The bank has written back tax provisions amounting to Rs 1152.32 crore, helping to reduce net loss to Rs 1726.15 crore in 9MFY2019. Adjusting for amortization of goodwill net of taxes at Rs 1691.03 crore, the net loss stood at Rs 35.12 crore for 9MFY2019.

IDFC First Bank: Financial Results

 

 

Particulars 1812 (3)$ 1712 (3) Var %$ 1812 (9)$ 1712 (9) Var %$ 1803 (12) 1703 (12) Var %
Interest Earned 3664.07 2283.73   8319.39 6648.69   8930.01 8532.71 5
Interest Expended 2518.90 1788.76   6233.16 5303.84   7131.91 6515.39 9
Net Interest Income 1145.17 494.97   2086.23 1344.85   1798.10 2017.32 -11
Other Income 304.32 230.79   622.36 1024.85   1117.89 1013.12 10
Net Total Income 1449.49 725.76   2708.59 2369.70   2915.99 3030.44 -4
Operating Expenses 1141.53 411.02   2139.80 1162.71   1652.59 1276.97 29
Operating Profits 307.96 314.74   568.79 1206.99   1263.40 1753.47 -28
Provisions & Contingencies 212.53 108.61   847.91 -6.36   236.10 282.50 -16
Exceptional Items 2599.35 0.00   2599.35 0.00   0.00 0.00 0
Profit Before Tax -2503.92 206.13   -2878.47 1213.35   1027.30 1470.97 -30
Provision for Tax -965.90 60.00   -1152.32 396.00   168.00 451.22 -63
PAT -1538.02 146.13   -1726.15 817.35   859.30 1019.75 -16
EPS*(Rs) -12.87 1.22   -4.81 2.28   1.80 2.13  
* Annualized on current equity of Rs 4781.52 crore. Face Value: Rs 10, Figures in Rs crore
$ figures for Q3FY2019 and 9MFY2019 are for merged entity and not comparable with earlier periods
Source: Capitaline Corporate Database
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IDFC First Bank has reported net loss of Rs 1538.02 crore for merged entity in the quarter ended December 2018 (Q3 of FY2019), on account of full amortization of goodwill created on merger of CapitalFirst. Adjusting for goodwill amortization, the net profit for merged entity stood at Rs 153 crore in Q3FY2019.

The Bank has accounted for the merger in accordance with the AS-14 accounting for amalgamation. All assets and liabilities of Capital First and its subsidiaries have been recorded at fair value based on an independent valuation report.

In view of the restrictions to declare dividend under section 15 of the Banking Regulation Act, the Bank has accelerated the amortization of Goodwill and other Intangibles which has been disclosed as an Exceptional Item in the Profit and Loss account at Rs 2599.35 crore (Rs 1691.03 crore net of taxes) have been recognized.

The Bank reported a Net Interest Income for merged entity at Rs 1145.17 crore and Total Income (Net Interest Income plus other revenues) at Rs 1449 crore in Q3FY2019. The Net Interest Margin (Net Interest Income as % of Interest Earning Assets) was 3.27% in Q3FY19 (post merger) as compared to sequential quarter 1.7% in Q2FY19 (pre-merger). The expansion of the Net Interest Margin was primarily due to the addition of the retail book through its merger with Capital First.

Operating expenses for the quarter ended December 31, 2018, were Rs 1142 crore which include Rs 370 crore of employee-related expenses. The cost-to-income ratio for the quarter was at 78.75%.

Asset quality slightly deteriorates: Bank has exhibited slight moderation in asset quality for the merged entity in Q3FY2019.

  • The Gross NPA of the bank was at 1.97% and the Net NPA was at 0.95% as of 31 December 2018.
  • The Provision Coverage Ratio stood at 72.9% as of 31 December 2018.
  • The bank's total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 16.51%, and Tier I CAR was at 16.14% as on 31 December 2018.
Asset Quality Indicators: IDFC First Bank
  201812$ 201809 201806 201803 201712 Variation
QoQ$ YTD$ YoY$
Gross NPA (Rs Crore) 1670.85 895.50 1774.47 1779.06 2776.67 - - -
Net NPA (Rs Crore) 796.02 321.18 881.08 891.16 1206.28 - - -
% of GNPA 1.97 1.63 3.24 3.31 5.62 - - -
% of NNPA 0.95 0.59 1.63 1.69 2.52 - - -
% CRAR - Basel III 16.51 19.18 19.25 18.00 19.15 - - -
% CRAR - Basel III - Tier I 16.14 18.80 18.89 17.67 18.84 - - -
Variation in basis points for figures given in percentages and in % for figures in Rs crore

$ figures for Q3FY2019 related to merged entity and not comparable with earlier periods

Business Highlights:

The total Balance Sheet size of the bank was Rs 156916 crore as of 31 December 2018.

The Gross Funded Assets stood at Rs 104660 crore, out of which Gross Funded Assets in the Retail segment were at Rs 36252 crore, contributing 34.62% to the total Funded Assets. The Gross Funded Assets in the Wholesale segment stood at Rs 56809 crore, out of which, funded assets in Infrastructure segment was at Rs 22710 crore which gradually came down every quarter for the last four quarters.

Total deposits of the Bank as of 31 December 2018, were Rs 61914 crore, out of which CASA Deposits were at Rs 6421 crore, contributing 10.37% to the total deposits and 4.92% to the total borrowing & deposits book. The Time Deposits of the Bank were at Rs 33182 crore, out of which Retail Time Deposits stood at Rs 7605 crore as of 31 December 2018.

The Bank maintained a statutory investment book of Rs 21456 crore and Rs 22018 crore of other investment book as of 31 December 2018.

As of 31 December 2018, the Bank's distribution network comprised 206 bank branches and 140 ATMs. The Bank also has 102 asset branches, 354 rural financing branches and 100 business correspondence centers. Through this network, the Bank is servicing its customers across 530 districts in 30 States and Union Territories.

The networth of the Bank was at Rs 18376 crore as of 31 December 2018.

Book Value per share stood at Rs 38.4 per share at end December 2018, while adjusted book value (net of NNPA) stood at Rs 35.8 per share at end December 2018.

YTD Financial Performance:

For the nine months ended December 2018 (9MFY2019), the bank posted net loss of Rs 1726.15 crore. The net interest income stood at Rs 2086.23 crore, while non-interest income was at Rs 622.36 crore in 9MFY2019. The expense ratio stood at 79.0% in 9MFY2019. The operating expenses were Rs 2139.80 crore and provision were Rs 847.91 crore in 9MFY2019. After amortization of goodwill, the pre-tax loss came in at Rs 2878.47 crore in 9MFY2019. The bank has written back tax provisions amounting to Rs 1152.32 crore, helping to reduce net loss to Rs 1726.15 crore in 9MFY2019. Adjusting for amortization of goodwill net of taxes at Rs 1691.03 crore, the net loss stood at Rs 35.12 crore for 9MFY2019.

IDFC First Bank: Financial Results

 

 

Particulars 1812 (3)$ 1712 (3) Var %$ 1812 (9)$ 1712 (9) Var %$ 1803 (12) 1703 (12) Var %
Interest Earned 3664.07 2283.73   8319.39 6648.69   8930.01 8532.71 5
Interest Expended 2518.90 1788.76   6233.16 5303.84   7131.91 6515.39 9
Net Interest Income 1145.17 494.97   2086.23 1344.85   1798.10 2017.32 -11
Other Income 304.32 230.79   622.36 1024.85   1117.89 1013.12 10
Net Total Income 1449.49 725.76   2708.59 2369.70   2915.99 3030.44 -4
Operating Expenses 1141.53 411.02   2139.80 1162.71   1652.59 1276.97 29
Operating Profits 307.96 314.74   568.79 1206.99   1263.40 1753.47 -28
Provisions & Contingencies 212.53 108.61   847.91 -6.36   236.10 282.50 -16
Exceptional Items 2599.35 0.00   2599.35 0.00   0.00 0.00 0
Profit Before Tax -2503.92 206.13   -2878.47 1213.35   1027.30 1470.97 -30
Provision for Tax -965.90 60.00   -1152.32 396.00   168.00 451.22 -63
PAT -1538.02 146.13   -1726.15 817.35   859.30 1019.75 -16
EPS*(Rs) -12.87 1.22   -4.81 2.28   1.80 2.13  
* Annualized on current equity of Rs 4781.52 crore. Face Value: Rs 10, Figures in Rs crore
$ figures for Q3FY2019 and 9MFY2019 are for merged entity and not comparable with earlier periods
Source: Capitaline Corporate Database

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