IDFC First Bank

“We feel it to be quite range bound from the current levels which we have reported for.”

“Question is that will it stay this way, as far as I can see for this financial year, i.e., for '27, this number looks firmly in the bag. So in other words, for H2 also, we expect similar number.”

“So we are actually happy to share with you that eventually our bank is not going to stop at 1. This will increase because the incremental is what it is, what I described to you.”

“we feel that we know what analysts have estimated for us for next year, etcetera. We don't see any material changes to those numbers. We believe broadly they're achievable.”

“this is reasonably achievable in the next 2 quarters as well.”

“That book now stands at INR6,825 crores and about 2% of the overall funded assets.”

“With respect to credit cards, happy to report that the cards in force crossed 5 million during the quarter. The book on an outstanding basis stood at INR9,875 crores, and the credit card spends grew at a healthy pace of about 15% on a Y-o-Y basis.”

“mortgage, what happens that we are practically not growing the mortgage book, I think Y-o-Y growth is practically nothing.”

“And if you see the cost-to-income ratio for the Q2, this is more now into 70s.”

“we built, we disbursed not less than maybe INR1.5 lakh crores, net book is INR70,000 crores.”

“The third thing is that the demand is a lot. We can grow as much as we want, but currently, we are growing at the numbers we're growing.”

“For example, NII grew by 21% on a Y-o-Y basis and 3.5% on a Q-on-Q basis.”

“The net interest margin for the quarter was 5.58% as compared to 5.90% in the previous quarter, excluding the income tax refund, which we have reported.”

“So to summarize, 16 bps is because of FCNR lending, 7 bps is because of excess liquidity, 4 bps is because of day count convention and 5 bps is because of other asset mix changes.”

“And hence, we have estimated that the overall impact on the ROA could be very minimal as low as 2 basis points.”

“Pursuant to the FCNR scheme, we also have estimated an additional benefit of 1%, including statutory benefits, which could accrue to us if we compare this with a normal deposit, which we would have raised otherwise”

“As part of the exercise, we also obtained our debut international rating from S&P and CareEdge. Happy to report that we got an investment-grade rating for the bank on this front.”

“Total deposits, which is customer deposits plus certificate of deposits that reached at INR3.48 lakh crores. The growth was about 25.9% on a Y-o-Y basis and 11.8% on a Q-on-Q basis.”

“And if we exclude FCNR deposits, customer deposits grew by 14.1% on a Y-o-Y basis. But here is where we slightly calibrated the growth because we got strong FCNR inflows during the current quarter.”

“As a result, we did reduce the bulk deposit ratio from 17.1% to 13.9% in the current quarter and also repaid certain certificate of deposits as it came up for maturity.”

“The growth on a Y-o-Y basis was 19.8%, while the CASA ratio for the quarter came to 47.6%, this was lower because of the FCNR deposit mobilization in the denominator.”

“During the quarter, the bank mobilized INR34,390 crores, which is about USD3.6 billion of FCNR(B) deposit under this scheme.”

“The actual number was US$ 950 million, and these were raised from the offshore IBU branch from marquee international investors.”

“So Jai, we have largely mobilized the borrowings. We don't have any pipelines as such this front.”

“We will see on the capital depending on the market conditions and so on. So that is something will also slightly benefit whenever it comes in into the overall equation.”

“No, not a material impact on this front. In fact, we feel spends could increase as the product offering is quite lucrative in that.”

“During the quarter, the treasury gains were modest at about INR11 crores as compared to INR181 crores reported for Q1, which was largely due to the hardening of the G-SEC yields during the quarter.”

“Moving on to provisions that reduced by 21.7% from INR1,452 crores to INR1,137 crores on a Y-o-Y basis.”

“the provision for the current quarter also includes standard asset provision of about INR100 crores on the FCNR backed loans.”

“If we exclude this, then the provisions for the quarter declined by 9.3% on a Q-on-Q basis.”

“On a headline basis, the gross NPA ratio of the bank improved by about 19 basis points from 1.51% reported in Q1 to 1.32% in Q2 and by 9 bps if we exclude FCNR leverage from the denominator.”

“Similarly, on net NPA, we saw an improvement of 4 basis points to 0.40%.”

“Further drill down, if we look for now the retail, agri and the MSME book, the GNPA ratio here improved from 1.4% to 1.24% and to 1.36% if we exclude again FCNR backed loans from the equation.”

“It has been now stable around the 99.5% for many quarters.”

“At an overall bank level, SMA 1 and 2 reduced by 4 basis points to 0.58%. The net slippage ratio for the quarter was stable at about 1.6%.”

“Against this, we also extended leverage of USD2.6 billion, which is in about INR25,000 crores to NRI customers.”

“At mobilization of USD3.6 billion, the bank garnered about 2.7% of the overall mobilization the country received under this scheme.”

“Moving on to loans. That registered a strong growth of 30.1% on a Y-o-Y basis and 13.6% on a Q-on-Q basis, including FCNR, and that book has now reached about INR3.47 lakh crores.”

“If we exclude the FCNR(B) backed loans, the loan assets on a gross of IBPC basis grew by 22.2% on a Y-o-Y basis and 5.7% on a Q-on-Q basis and was about INR3.29 lakh crores.”

“happy to report that the profit has remained above INR1,000 crores for the second consecutive quarter, and the profit for the quarter stands at INR1,045 crores, which is an improvement of about 196.5% on a Y-o-Y basis”