IDFC First Bank

IDFC Bank is a subsidiary of infrastructure finance company IDFC Ltd, which started banking operations in October 2015. And its performance for Q4FY16 was not exactly trail blazing as it reported a drop in profitability and asset quality. The Bank reported a 32% (QoQ) drop in net profit at Rs.165 crore thanks to the drop in total income from Rs.2007 crore to Rs.1953 crore sequentially. Total expenditure of the bank rose marginally from Rs.1618 crore to Rs.1693 crore. NII was better – up 8% at Rs.417 crore.

Asset quality deteriorated. Gross NPA was rose sharply from 3.09% to 6.16% (QoQ) and Net NPA also jumped up from 0.98% to 2.39%. This jump in NPA was on account of bad loans in infra and telecom sector wherein part of the old IDFC loans came into the bank.