ICICI Direct: IDFC First Bank Walking On Right Path Despite Challenging Environment
Pedestrians wearing protective masks walk past an IDFC First Bank Ltd. branch on a near-empty street in Mumbai, India (Photographer DhirajSinghBloomberg)

ICICI Direct: IDFC First Bank Walking On Right Path Despite Challenging Environment

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

IDFC First Bank Ltd. delivered a strong performance despite a challenging environment. Except moratorium in phase 2 still high at 28%, the bank recorded an improvement on all parameters.

The bank offered moratorium 2 to 28% of its customers by value versus 35% in moratorium 1. Around 23% is in retail assets including rural portfolio and 35% is in the wholesale financing portfolio.

Provision was at Rs 764 crore, including Rs 375 crore related to Covid-19 over and above Rs 225 crore done in Q4 FY21.

Asset quality witnessed a strong sequential improvement with gross non-performing asset (GNPA) and net non-performing asset (NNPA) ratio improving approximately 61 basis points and approximately 43 basis points to 1.99% and 0.51%, respectively.

Gross NPA of the retail loan book was at 0.87% versus 1.77% as of March 31, 2020 and net NPA percentage of the retail loan book of the bank was at 0.24% vs. 0.67% as of March 31, 2020.

Moratorium helped NPA ratio improvement. Provision coverage ration has been improving in the last five quarters and has reached 74.93% from 64.53% in Q4 FY20.

Click on the attachment to read the full report:

ICICI Direct IDFCBank Q1FY21 Result Update.pdf

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