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Today IDFC First Bank’s shares has surged as much as 7 per cent to Rs 20.20 after the lender swung to profit in the March quarter. IDFC First Bank on Friday reported a consolidated net profit of Rs 76.36 crore for January-March 2020. The private sector lender had posted a loss of Rs 212 crore during the corresponding January-March quarter a year ago.
Sequentially, there was a net loss of Rs 1,631.59 crore in the third quarter ended December 2019. The bank said that in view of accounting for IDFC – CFL (Capital First Ltd) merger from appointed date of October 1, 2018, the figures of the year ended March 31, 2020, are not comparable.
The figures for the previous quarter/year have been regrouped wherever necessary in order to make them comparable, IDFC First Bank said in a regulatory filing. Total income during the fourth quarter of FY20 rose to Rs 4,553 crore as against Rs 3,971 crore during the same period of FY19.
For the full year 2019-20, the bank witnessed widening of net loss at Rs 2,843.39 crore as against Rs 1,907.88 crore in the previous fiscal. Income during the year rose to Rs 17,962.72 crore from Rs 13,056.17 crore. On the asset front, the gross non performing assets (NPAs) or bad loans as a percentage of gross loans as on March 31, 2020 increased to 2.60 per cent from 2.43 per cent by year ago same period. However, net NPAs improved to 0.94 per cent as against 1.27 per cent.
IDFC First Bank said that the board at its meeting had an enabling resolution for borrowing of funds through issue of debt instruments, on private placement basis, up to an amount not exceeding Rs 5,000 crore.
