{"id":157918,"date":"2024-01-22T11:11:50","date_gmt":"2024-01-22T16:11:50","guid":{"rendered":"https:\/\/44.250.171.167\/?p=157918"},"modified":"2024-01-22T11:11:52","modified_gmt":"2024-01-22T16:11:52","slug":"idfc-first-bank-limited-q3-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/idfc-first-bank-limited-q3-fy24-earnings-conference-call-insights\/","title":{"rendered":"IDFC First Bank Limited Q3 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from IDFC First Bank Limited (IDFCFIRSTB) Q3 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Deposit Growth<\/strong>\n<ul>\n<li>Retail deposits grew from INR10,400 crores to INR1,39,431 crores in 5 years.<\/li>\n<li>Total deposits grew 4.5X from INR39,602 crores to INR1,76,481 crores.<\/li>\n<li>Strong growth despite dropping interest rates.<\/li>\n<li>Shows strength of retail franchise and funding.<\/li>\n<li>Assumes deposit growth of 24.8% over next five years versus current growth of over 40%.<\/li>\n<li>Expects assets to be INR500,000 crores in 2029.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Loan Growth and Asset Quality<\/strong>\n<ul>\n<li>Loan book grew from INR1,05,000 crores to INR1,89,435 crores.<\/li>\n<li>Slower loan growth intentional to fix credit-deposit ratio.<\/li>\n<li>Focused on reducing risk profile of loans.<\/li>\n<li>Targeting loan book of INR5,00,000 crores by 2029.<\/li>\n<li>Assumption of 20.3% growth versus current 24.5%<\/li>\n<li>Along with other assets, targeting total assets of INR7,00,000 crores.<\/li>\n<li>Retail, MSME, rural GNPA now at 1.45% and NNPA at 0.5%.<\/li>\n<li>Targeting gross NPA of 1.5% and net NPA of 0.4% in 2029.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Profitability Growth<\/strong>\n<ul>\n<li>Net interest income grew 30% in Q3 FY24.<\/li>\n<li>Profit after tax grew 37% to INR2,232 crores in 9M FY24.<\/li>\n<li>Core operating profit grew 35% in 9M FY24.<\/li>\n<li>Growth driven by strong business volumes.<\/li>\n<li>Targeting Return on Assets of 1.9-2.0%.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capital and Liquidity<\/strong>\n<ul>\n<li>Maintaining capital adequacy at 16.73% with CET1 at 13.95%.<\/li>\n<li>Average liquidity coverage ratio at 121% showing healthy liquidity.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Credit Costs<\/strong>\n<ul>\n<li>Provisions up 45% YoY versus 24% loan growth.<\/li>\n<li>Some tailwinds in base year from COVID provisions and recoveries.<\/li>\n<li>Now at more normalized levels.<\/li>\n<li>Underlying portfolio metrics remain strong.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Digital Lending Partnerships<\/strong>\n<ul>\n<li>Working with fintechs to expand reach.<\/li>\n<li>Ensure full access to customers for cross-sell.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Vehicle Finance Portfolio<\/strong>\n<ul>\n<li>Higher share of used cars given better yields.<\/li>\n<li>Very limited new car loans only to existing customers.<\/li>\n<li>Credit quality in vehicle finance solid.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Credit-Deposit Ratio Trends<\/strong>\n<ul>\n<li>Brought down ratio from 137% at merger to 101% now.<\/li>\n<li>Incremental CD ratio around 65-80% showing faster deposit growth.<\/li>\n<li>Expect to bring it below 100% by FY23 end on rapid deposit momentum.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Collections Process<\/strong>\n<ul>\n<li>Increasingly digital and automated.<\/li>\n<li>Use of bots for calling and payment links for customers.<\/li>\n<li>Still some physical collections where needed.<\/li>\n<li>However, direction is towards more direct-to-consumer<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from IDFC First Bank Limited (IDFCFIRSTB) Q3 FY24 Earnings Concall Deposit Growth Retail deposits grew from INR10,400 crores to INR1,39,431 crores in 5 years. Total deposits grew 4.5X from INR39,602 crores to INR1,76,481 crores. Strong growth despite dropping interest rates. Shows strength of retail franchise and funding. Assumes deposit growth of 24.8% over [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[151,10169,8200],"class_list":["post-157918","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-banking","tag-earnings","tag-retail-banking"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":155070,"url":"https:\/\/alphastreet.com\/india\/indusind-bank-ltd-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":157918,"position":0},"title":"IndusInd Bank Ltd Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"October 19, 2023","format":false,"excerpt":"Key highlights from IndusInd Bank Ltd (INDUSINDBK) Q2 FY24 Earnings Concall Loan Growth Momentum Loan growth continues to be strong at 21% YoY and 5% QoQ, driven by retail segment growing 25% YoY and 6% QoQ. 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The bank saw strong growth across all product segments; home loans grew by 48% YoY and wheels segment saw growth of 50%. Q&A Highlights:\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/157918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=157918"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/157918\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=157918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=157918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=157918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}