IDFC FIRST Bank Merger Performance and Strategy Update
e. Net Profit
Section 8: Profitability & Capital
Bank has turned profitable on sustained basis based on strong Operating Profits and low credit costs
Quarterly Net Profit / Loss (Rs crore)
72
701^765
556
605
474
343
281
==
94
101
130
128
152
ויייוי
Provisions
on Infra
revaluation;
Provisions on
Reliance Capital, Provisions on
DHFL, Infra A/Cs Infra A/Cs
-1,538
Goodwill Write-off
on merger
-1,639
Provisions on
Telecom A/C
•
COVID
2nd wave
-630
This being early life-stage of the Bank, our core
operating profits were low at only 1.6% of the total
assets. Hence, we did not have the operating profit
cushion to absorb COVID second wave and made
only marginal profits of Rs. 145 cr in FY22.
Our Credit costs were 1.8% of total assets in FY22
(COVID second wave year).
Today our Operating profit has crossed 2.34% of the total
assets and hence even with any pandemic like situation
(COVID wave similar to last time) will keep the bank firmly in
profits.
This is because the Bank's Operating Profits have
fundamentally strengthened substantially by a strong and
profitable model
Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
^ The Bank reported net profit of Rs. 803 crore for Q4 FY23. The Bank has already called out in Q4-FY23 that the net profit of Q4-FY23 was Rs. 701 crore
adjusted for the one time items in the P&L.
55
IDFC FIRST
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