IDFC FIRST Bank: Quarterly Income and Business Overview
Section 4: Retail Loans - Gross and Net NPA
Long term pre-COVID
Average (A)
(Mar-19 to Dec-19)
Proforma
Dec-20
Covid Impact
Sequential (QoQ)
Mar-21
(c)
(B)
(C-A)
(bps)
Gross NPA - Retail
2.27%
3.88%
4.01%
175
Change (C - B)
(bps)
Increased by
13 bps
Net NPA-Retail
1.13%
2.35%
1.90%
77
Decreased by
45 bps
39%
53%
300
Increased by
1319 bps
Provision Coverage
Ratio (%)
51%
In the Pre-Covid time, the Bank was sustainably maintaining the Gross NPA and Net NPA level of the Retail Loan Book around 2.3% and 1.1%
respectively. Due to the Covid-19 impact and the subsequent lockdown and moratorium which ended by August 2020, the GNPA and NNPA of the
Bank in Retail Loans increased by 175 bps and 77 bps respectively as compared to Pre-Covid average level. This magnitude of increase in NPA levels in
considered normal in the context of COVID-19 impact on the banking system.
The Cheque/ECS/NACH bounce trend over the months has improved since July 2020 and the Bank is confident of getting back to pre-Covid level of
GNPA and NNPA in due course, as and when the economy revives to normalcy.
Section 4: Assets Quality
41
IDFC FIRST
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