Big boy, IDFC Bank shines owing to a brilliant report card

IDFC Bank has declared its Q2FY17 results on Tuesday after market hours. The bank’s interest earned has increased by 5.44 per cent to Rs 2083 crore in Q2FY17 as compared to previous quarter. Its operating profit before provisions and contingencies too has risen by 32.83 per cent to Rs 615 crore in Q2FY17 on a quarterly basis. IDFC Bank’s net profit has boosted by 46.46 per cent to Rs 388 crore in Q2FY17 as compared to previous quarter.

On the asset quality front, IDFC Bank’s gross non-performing assets (NPAs) have declined marginally to 5.96 per cent in Q2FY17 against 6.09 per cent in Q1FY17. The bank’s net NPA has risen slightly to 2.44 per cent in Q2FY17 from 2.32 per cent in Q1FY17. The bank said that they have not seen any deterioration in the asset quality and that the level of stressed assets has been contained.

IDFC Bank has 1,154 customer points of presence across 61 districts in 15 states, which they are planning to increase to 1400 by the end of FY17. The bank has completed the acquisition of Grama Vidiyal Microfinance and it has become a wholly owned subsidiary with effect from October 13, 2016.

IDFC Bank has committed to the 15 per cent to 20 per cent bottom line guidance for FY17 on a yearly basis. The bank has plans to acquire 13 lakh banking customers by the end of the financial year.

The share price of IDFC Bank has increased by 3.77 per cent on bourses in early trades; and is trading at Rs 78.95 on an intraday basis.