IDFC First Bank reported 79% jump in net profit to Rs 128 crore in Q4 FY21 from Rs 72 crore in Q4 FY20.  
  
Total income during the quarter increased by 5.6% year-on-year (YoY) to Rs 4,834.01 crore. 

Net Interest Income (NII) improved by 15% to Rs 1,960 crore in Q4 FY21 from Rs 1,700 crore in Q4 FY20. Net Interest Margin (NIM) rose to 5.09% as on 31 March 2021 from 4.61% as on 31 March 2020. 

Pre-Provisioning Operating Profit (PPOP) declined by 18% to Rs 646 crore in the fourth quarter from Rs 787 crore in the same period last year. 

The provision for Q4 FY21 was at Rs 603 crore as compared to Rs 679 crore for Q4 FY20. In Q4 FY21, the bank released Rs 324 crore from provisions made for one Telecom Account based on mark to market value of the instruments and made additional provisions of Rs 375 crore for COVID-19 which is carried forward to the next financial year for the unprecedented situation arising due to COVID-19 second wave in India. 

Earlier, erstwhile Capital First had portfolios like loan against shares with ticket sizes above Rs 20 lac and loans with annual interest payments, which were allowed for NBFCs but are not allowed for a bank. On merger with the bank, dispensation was provided by the RBI for the said portfolio which is no longer available, due to which the Bank had to make 100% provision on these loans amounting to Rs 89 crore in Q4 FY21. 

Profit before tax in Q4 March 2021 stood at Rs 43.11 crore, down by 59.9% from Rs 107.38 crore in Q4 March 2020. 

On the asset quality side, gross non-performing assets (NPAs) stood at Rs 4,303 crore as on 31 March 2021 as against Rs 1,289.24 crore as on 31 December 2020 and Rs 2,279.56 crore as on 31 March 2021. 

The gross NPA ratio fell to 4.15% as on 31 March 2021 from 4.18% (proforma basis) as on 31 December 2020 and 2.60% as on 31 March 2020. 

The net NPA ratio declined to 1.86% as on 31 March 2021 from 2.04% (proforma basis) as on 31 December 2020 and 0.94% as on 31 March 2020. 

Including the additional COVID-19 provision of Rs 375 crore made in Q4 FY21 and carried forward to FY22, the PCR would be 64.95% on reported GNPA and NNPA as on 31 March 2021. 

The total restructured (approved & implemented) book including retail and wholesale loans stood at 0.9% of the total funded assets. 

Collection Efficiency for the bank has improved every month since July 2020 and in March 2021, the collection efficiency for early buckets has reached 100% of the pre-COVID collection efficiency levels. The bank would continue to actively monitor the portfolio quality in the context of the second wave of COVID-19 pandemic. 

The bank reported a net profit of Rs 452 crore in the year ended 31 March 2021 as against net loss of Rs 2,864 crore in the year ended 31 March 2020. Total income rose 1.1% to Rs 18,221.55 crore in FY21 over FY20. 

The total customer deposits increased by 43% to Rs 82,725 crores as of 31 March 2021, as compared to Rs 57,719 crore as of 31 March 2020. 

CASA deposits rose 122% YoY to Rs 45,896 crore as on 31 March 2021, as compared to Rs 20,661 crore as on 31 March 2020. CASA ratio improved to 51.75% as on 31 March 2021 compared with 31.87% as on 31 March 2020 and 48.31% as on 31 December 2020. 

Total Funded Loan Assets stood at Rs 1,17,127 crore as on 31 March 2021, compared to Rs 1,07,004 crore as on 31 March 2020. Retail loans including retail PSL portfolio constitute 67% of the overall loan assets. 

V Vaidyanathan, managing director and CEO, IDFC FIRST Bank, said, "Including the equity capital of Rs 3000 crore raised through QIP on 6 April 2021, our overall capital adequacy is strong at 16.32%. We maintain high levels of liquidity with liquidity coverage ratio of 153%. We therefore approach FY 22 with strength and confidence. 

Our CASA grew 122% last year and we reached a record CASA ratio of 51.75%. We have therefore reduced our savings rates to as low as 4% and peak savings rates to 5%, effective May 1. 

This reduction of savings rates to market benchmarks is a seminal moment in our journey as a bank, as we will now be able to participate in the Prime Home loans market, which is largely to employees of top corporates. The bank has started offering prime home loans at as low as 6.9%. This will set the bank up for perennial growth with even better asset quality going forward. 

Our home loan book grew strongly at 37% during FY21. Home loans is a large Rs. 25 lakh crore market in India and home loans will continue to be our key business line going forward as well. 

When COVID 1.0 struck in March 2020, we made necessary changes by restricting lending to COVID affected industries and by tightening credit norms accordingly. Thus, the loans booked after June 2020 already factor in the COVID impact, and are in fact behaving better than pre-COVID bookings, adjusted for like-to-like vintage." 

IDFC First Bank was founded by the merger of IDFC Bank and Capital First in December 2018.The bank provides a range of financial solutions to individuals, small businesses and corporates. As of 31 March 2021, the bank has 596 branches and 592 ATMs and 85 recyclers across the country.