Capital First Strategy, Loan Growth and Profitability Trends
Section 4: Gross and Net NPA pertaining to Retail Loans have broadly remained steady,
and showed a reducing trend over the last quarters on the banking platform.
These figures include the impact of the Supreme Court notification to stop NPA classification post August 31, 2020 till further orders. Without this impact
the proforma GNPA as on 31 December 2020 would have been 3.88% and the NNPA would have been 2.35%.
We will like to share that the number are appearing low only because of Standstill by Honorable Supreme Court's order on NPA, the GNPA and NNPA for
the retail loan assets are likely to stabilize around 2.3% and 1.2% respectively within the next 2-3 quarters
GNPA
GNPA (Long Term Avg.)
NNPA
2.32%
2.31%
2.26%
1.77%
Proforma GNPA as of Dec-20: 3.88%
2.27%
161 bps higher due
to COVID from
Long Term Avg.
1.14%
1.08%
1.06%
0.87%
0.67%
Not representative
0.41%
0.27%
0.24%
because of Standstill
0.17%
0.13%
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Long term Average mentioned above is Average of Bank's GNPAs for the last 4 quarters Pre-COVID pandemic. (i.e. Mar-19, Jun-19, Sept-19 and Dec-19)
Section 4: Assets Quality
37
IDFC FIRST
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