IDFC First Bank Q3 FY22 Research Tear Sheet

IDFC First Bank is an Indian private sector bank. It forms part of IDFC. It was incorporated in the year on October, 2015. The bank got their license in July 2015 from Reserve Bank of India. The shares are listed on BSE and NSE. Initially it started with 23 branches in India MadhyaPradesh, Delhi, Mumbai, Hyderabad, Bengaluru, Pune, Chennai, Ahmedabad and kolkata. IDFC First Bank has it’s headquarter in Mumbai, Maharashtra. The products dealt with this bank include Consumer banking, Credit cards, Home loans, Loans against property, Personal loans, Consumer Durable loans, Vehicle loans, Business loans, Micro Enterprise loans, Private banking,  Wealth management, Investment banking, Corporate banking and Wholesale banking. Net Profit grew by 117% to Rs. 281 crore in Q3-FY22, YoY. Core operating profit increased 54% to Rs. 745 crore, YOY. NII grew by 36% to Rs. 2,580 crore in Q3-FY22, on a YoY basis. Core operating income increased by 34% YOY to Rs. 3,324 crore in Q3-FY22. Operating Expense increased 30% YOY at Rs. 2,579 crore for Q3-FY22. Fee and Other Income grew 28% YOY to Rs. 744 crore in Q3 FY22.

Key Financial Highlights

Particulars	31.12.2021	31.12.2020
TOTAL INCOME	5, 19, 779	4, 83,945
TOTAL EXPENDITURE	4,42,806	4,19,917
Profit/ {Loss)	37,788	17,871
Net Profit/ (Loss)	28,106	12,951
Diluted EPS	0.45	0.23

Deposits

CASA Deposits increased 18% to Rs. 47,859 crore, YoY. Customer Deposits increased by 11% to Rs. 85,818 crores. The Bank has opened 599 branches and 727 ATMs (including recyclers) across the country. CASA ratio: 51.59% as of Dec 31, 2021, as compared to 48.31% as of Dec 31, 2020. Avg. CASA Ratio is 50.54% as on Q3 2021, as compared to 44.66% as on Q3 2020. The bank has strong deposits driven by strong customer focus, customer-first products, technology focus and strong brand.

Funded Assets

Gross funded assets increased by 11% to Rs. 1,22,219 crore. Retail funded asset book constitutes 62% of the overall funded asset. The Retail funded book increased 28% YoY to Rs. 75,556 crore. Housing loans grew by 44% YOY and mortgage backed businesses grew 26% YoY.

The Commercial loan Book of the Bank increased by 16%  to Rs. 10,496 crore, YoY. Corporate funded book decreased by 3% YOY from Rs. 22,374 crore. PCR increased from 52.06% to 57.06% on Q3 2021 due to order to strengthen the balance sheet.

Asset quality

The bank has maintained a good asset quality with Gross NPA of 2% and Net NPA of 1%. . In Q3-2021 the Retail Gross and Net NPA reduced to 2.92% and 1.28%. Key indicators of NPA include cheque bounces, collections, recovery, vintage analysis. The bank  is targeting Gross and Net NPA to reach 2% and 1% respectively.

Conference Call Highlights:

Management Updates

Fees and Other Income increased by 28% Y-O-Y. Capital ratio thieved to 15.38%. Home Loans grew 45% Y-o-Y. The Bank has issued over 0.5 million cards. Card in force  has grown 34% YOY. Activation fees is 71%.

Business Updates:

HPCL has entered into a partnership with the IDFC First Bank for fuel payments using FASTags.

 Vodafone, Idea has repaid ₹1,500 cr dues to the IDFC First Bank.

 IDFC FIRST Bank has launched India’s first standalone metal debit card.

 IDFC FIRST Bank has appointed Naarayan T V as the Chief Marketing Officer (CMO).

IDFC First Bank has introduced new Interest Rates on These Term Deposits.