IDFC FIRST Bank Merger and Performance Update
6a. Overall Bank - Gross and Net NPA, impact of COVID 19
ā
ā
Mar-19
Jun-19
Sep-19
Dec-19
Long term
pre COVID
Average
Proforma
Dec-20
Change
(bps) Dec-20
Gross NPA- Bank
2.43%
2.66%
2.62%
2.83%
2.63%
4.18%
155
Net NPA Bank
-
1.27%
1.35%
1.17%
1.23%
1.25%
2.04%
78
Provision Coverage Ratio (%)
48%
50%
56%
57%
53%
52%
For the analysis, we submit that the reported NPAs in the last 3 quarters including quarter ending Dec 31, 2020 were lower than actual and not
representative of the real situation due to Supreme Court's order on not declaring accounts as NPAs until further orders. Hence the bank draws
attention to the pre-COVID NPA levels (1) of the bank, and comparing the same with the proforma (effectively actual) NPA post-COVID (2)
As a result of the COVID, the Gross NPA for the bank as of Dec 31, 2020 has increased by 155 bps as compared to Pre-COVID average. Similarly the
Net NPA for the bank as of Dec 31, 2020 has increased by 78 bps
Provision Coverage including the general provision, COVID19 provision, specific provisions on NPAs was 309% on reported NPA and 99% on
Proforma NPA (2)
1.
Note: Long term COVID average indicates average GNPA/NNPA of last 4 quarters prior to COVID-19
The period Mar-2019 to Dec-2019
2.
As of Dec 31, 2020; Proforma GNPA/NNPA indicates the numbers without considering the impact of the Supreme Court notification to stop NPA classification post August 31, 2020
19
IDFC FIRST
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