Capital First Strategy, Loan Growth and Profitability Trends
Results Update: IDFC FIRST Bank: Strong Strides across all the Strategic Priorities
4. Asset Quality of the Bank remains high
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Bank's Gross NPA reduced sequentially from 1.62% as of Sept 30, 2020 to 1.33% as of Dec 31, 2020.
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Bank Net NPA reduced sequentially from 0.43% as of Sept 30, 2020 to 0.33% as of Dec 31, 2020.
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Provision Coverage Ratio (PCR) was 75.14% as of Dec 31, 2020 as compared to 57.34% as of Dec 31, 2019.
The above figures include the impact of the Hon. Supreme Court notification to stop NPA classification post August 31 2020 till further
orders. Without this impact, the Proforma GNPA as on Dec 31, 2020 would have been 4.18% and the Proforma NNPA would have been
2.04%. As compared to Long Term Avg. of 4 pre-COVID quarters, the proforma GNPA is higher by 155 bps.
Provision Coverage including the General Provision, COVID19 provision, Specific Provisions on NPAs was 309% on reported NPA and 99% on
Proforma NPA as of 31 Dec 2020 (without the SC order impact).
Asset Quality on Retail Loan Book:
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Retail Asset Gross NPA stood at 0.27% as of Dec 31, 2020 as compared to 0.41% as of Sept 30, 2020 and 2.26% as of Dec 31, 2019.
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Retail Asset's Net NPA stood at 0.13% as of Dec 31, 2020 as compared to 0.17% as of Sept 30, 2020 and 1.06% as of Dec 31, 2019.
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Without the impact of Hon. Supreme Court's order, the Proforma GNPA for retail as on Dec 31 2020 would have been 3.88% and the
Proforma NNPA would have been 2.35%. As compared to Long Term Avg. of 4 pre-COVID quarters, the proforma GNPA is higher by 161 bps.
The overall collection efficiency for standard loans stood at 98% of the pre-covid levels (Jan-20 and Feb-20) as of 31 Dec 2020.
*Long term Average mentioned above is Average of Bank's GNPAs for the 4 quarters prior to COVID pandemic. (i.e. Mar-19, Jun-19, Sept-19 and Dec-19)
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IDFC FIRST
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