IDFC Bank opens in the red post weak results

IDFC Bank declared its Q3FY17 results on January 25, after market hours. The bank’s net interest income (NII) also rose 5.08 per cent to Rs 521 crore in Q3FY17 on a quarterly basis. During demonetisation, the bank received huge deposits of Rs 27001 crore, a growth of 18 per cent during the quarter on a Q-o-Q basis.

However, IDFC Bank’s operating profit before provisions and contingencies declined 18.25 per cent to Rs 476 crore in Q3FY17 on a quarterly basis. The bank’s provision expense increased from Rs 22.34 crore in Q2FY17 to Rs 232 crore in Q3FY17. Its net profit dropped 50.68 per cent to Rs 191 crore in Q3FY17 on a quarterly basis due to heavy provisioning in the quarter.

IDFC Bank’s stressed assets slightly increased in Q3FY17 as compared to the previous quarter. Its gross NPA stood at 5.96 per cent to Rs 3220 crore in Q2FY17 as against 7.03 per cent amounting to Rs 3587 crore in Q3FY17. The bank’s net NPA stood at 2.44 per cent to Rs 1271 crore in Q2FY17, while it was 2.57 per cent amounting to Rs 1250 crore in Q3FY17.

The share price of IDFC Bank decreased 5.03 per cent and is trading at Rs 62.45 in an intra-day basis. After posting weak results, its share price opened in the red at the start of Friday’s session. However, the scrip may recover on an intra-day basis after its management conference call at 10.30 am.