IDFC First Bank's Q1FY22 net loss at Rs 630 cr

New Delhi, Jul 31 (IANS): IDFC First Bank on Saturday reported a net loss of Rs 630 crore for Q1FY22.

"Net Loss of Rs 630 crore for Q1FY22 because of prudent provisions for Covid wave 2.0," the bank said in a statement.

"Covid provision pool increased from Rs 375 crore to Rs 725 crore during the current quarter on a prudent basis to act as a cushion for Covid impact," it added.

Besides, its total income grew by 36 per cent on year-on-year basis to reach Rs 3,034 crore in Q1FY22.

The bank reported a rise of 25 per cent in net interest income on a YoY basis to Rs 2,185 crore in Q1FY22.

The bank said that its gross non-performing asset (GNPA) and net non-performing asset (NNPA) stood at 4.61 per cent and 2.32 per cent, respectively.

"GNPA and NNPA include impact of 84 bps and 71 bps, respectively, on account of one Mumbai based infra toll account which slipped during the quarter. The bank expects no material economic loss in this account eventually as this is an operating toll road and is only delayed," the bank said.

"This was already part of the identified stressed asset list disclosed in the previous periods. Excluding this account, the PCR would be 77.23 per cent," it added.

V. Vaidyanathan, MD and CEO, IDFC First Bank, said: "Our CASA ratio is high at 50.86 per cent despite reducing savings account interest rates by 200 bps recently, which points to the trust the customers have in our bank and service levels. Because of our low-cost CASA, we can now participate in prime home loans business, which is a large business opportunity."

"Regarding the loss during the quarter, we have made prudent provisions for Covid second wave, and expect provisions to reduce for the rest of the three quarters in the FY22. We guide for achieving pre-Covid level gross and net NPA, with targeted credit loss of only 2 per cent on our retail book by Q4 FY 22 and onwards, assuming no further lockdowns," he added.



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Title: IDFC First Bank's Q1FY22 net loss at Rs 630 cr

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