IDFC Bank’s bad loans increase in Q4FY16

IDFC Bank declared its Q4FY16 results on April 26. The bank’s total interest earned has increased by 1.48 per cent to Rs 1816 crore in Q4FY16 as compared to previous quarter. Its total expenditure has increased by 4.65 per cent to Rs 1693 crore in Q4FY16 on a quarterly basis. IDFC Bank’s interest expense has decreased by 0.29 per cent to Rs 1399 crore in Q4FY16 on a quarter on quarter basis.

IDFC Bank’s operating profit before provisions and contingencies has declined by 28.55 per cent to Rs 122 crore in Q4FY16 as compared to previous quarter. The bank’s bottom line also decreased by 31.84 per cent to Rs 165 core in Q4FY16 on a quarterly basis.

On segmental revenue front, IDFC Bank earned 54.17 per cent from treasury segment, 44.88 per cent from wholesale banking and remaining 0.95 per cent from retail segment during Q4FY16.

On asset quality front, IDFC Bank’s gross Non-Performing Assets (NPA) increased twice to 6.16 per cent amounting to Rs 3058 crore in Q4FY16 against 3.09 per cent amounting to Rs 1462 crore in Q3FY16. The bank’s net NPAs stand at 2.39 per cent in Q4FY16 while at 0.98 per cent in Q3FY16.

On a yearly basis, IDFC Bank’s total interest earned stands at Rs 3649 crore in FY16. Its operating profit before provision and contingencies stands at Rs 157 crore in FY16. The bank has reported a net profit of Rs 467 crore in FY16.

The share price of IDFC Bank declined by 5.7 per cent on bourses in early trades; and is trading at Rs 50.4 on an intraday basis.

IDFC Bank is engaged in banking services. The company focuses on three business verticals: Wholesale Bank, Retail Bank and Bharat Bank. Its Bharat Banking solutions include community engagement, value chain financing, IDFC Bank Pratham-Savings Account (BSBDA), Sakhi Shakti Joint Liability Women’s Livelihood Group Loan and Current Account.