IDFC FIRST Bank: Quarterly Income and Business Overview
Section 4: The asset quality trends over the last 8 years at Capital First is displayed below
as a demonstration of our trend in asset quality and our capabilities in this space.
Since most of the loan book in the merged entity has been built and seasoned in Capital First prior the merger and the same model is being scaled
up now, we present below the asset quality trends of the book in Capital First which have stayed steady over the years, i.e. Gross NPA ~2% and Net
NPA ~1%. The portfolio remained stable even after being stress tested through economic slowdown in 2010-2014, demonetization (2016), GST
implementation (2017) and economic slowdown in recent times. Hence gives us confidence to grow in future on this strong asset quality model.
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%
1.52%
1.59%
1.65%
1.72%
1.63%
1.59%
1.62%
1.57%
1.13%
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.
Section 4: Assets Quality
40
IDFC FIRST
BankView entire presentation