BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
IDFC FIRST Bank Ltd.'s Q2 FY22 earnings beat was led by a superior NIM trajectory (improved 25 basis points to 5.76%), retail asset growth of 7% quarter-on-quarter, and containment of credit cost at 160 basis points.
This was offset by higher opex (pushing cost-to-income ratio higher) and lower support of treasury.
Forward flows from early-dpd buckets resulted in elevated slippages, though recoveries and aggressive write-offs reduced GNPA quarter-on-quarter.
Credit costs were lower due to buffer utilisation (of 50 basis points) and recoveries in write-offs.
Drawing comfort from gradual and consistent improvement in cheque bounce trends, collection efficiency, customer credit profile, etc., IDFCFB expects <2.5% credit cost in FY22.
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