Highlights of Q3 FY22 Results
Asset quality remained high for close to a decade at Capital First.
Section 2: Creation
of IDFC FIRST Bank
We present below the asset quality trends of our bank (including pre-merger history at Capital First) as demonstration of our skills and track record in
managing stable and high asset quality, i.e. Gross NPA and Net NPA was maintained at ~2% and 1% respectively over a long time. The portfolio remained
stable even after being stress tested through economic slowdown in 2010-2014, demonetization (2016), GST implementation (2017).
After the merger, the bank has been able to move to even safer credit categories like prime home loans because of reduced cost of funds of a bank. Based
on the above, we expect to maintain the business at Gross NPA of 2%, Net NPA of 1% and credit costs of ~2% in a stable manner.
Largely Wholesale Loan
5.28% Book during this phase
3.78%
CFL-GNPA
CFL-NNPA
During this phase, the Company transformed into a Retail Financing Player with introduction of many Retail Loans products and consequently the
quality improved and remained high over the years. (Section of the Graph is representative)
Demonetization
Nov 8th 2016
GST Launched
July 1st 2017
1.74%
1.21%
1.71%
1.13%
1.52%
1.59%
1.65%
1.72%
1.63%
1.59%
1.62%
1.57%
0.97%
1.00%
1.00%
1.04%
1.00%
0.97%
1.00%
1.00%
31-Mar-10
31-Mar-16 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18
Note: NPA recognition norm migrated to 90 dpd effective from 01 April, 2017.
17
IDFC FIRST
BankView entire presentation