IDFC First Bank faced a dip of nearly 5% in early trade on October 30 as investors engaged in profit-booking, despite the bank reporting robust profit growth in the September quarter of the current fiscal year.
The private sector lender revealed a remarkable 35% year-on-year rise in net profit, reaching Rs 751 crore, propelled by a substantial growth in core operating income, which surged by 35% as well.
IDFC First Bank’s net interest income stood at Rs 3,950 crore, marking a 32% increase over the previous year. Furthermore, its net interest margin expanded by 49 basis points to 6.32%.
In terms of asset quality, the bank displayed resilience, with gross non-performing assets (NPA) dropping by 6 basis points quarter-on-quarter to 2.11%, and net NPAs declining by 2 basis points to 0.68% for the quarter.
At 10:52 am the shares were trading at ₹83.30, 3.20% lower
Despite these impressive figures, IDFC First Bank’s stock experienced a decline as investors engaged in profit-taking activities. The bank’s performance in margins and volume growth was robust during the September quarter. However, there was a slight weakness observed in asset quality, with gross slippages higher quarter-on-quarter. Management remains optimistic, expecting the asset quality to recover in the second half of FY24.
