IDFC First Bank share climbs nearly 14% on reporting highest-ever profit

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IDFC First Bank reported its highest-ever standalone profit of Rs 474.33 crore
The stock was trading 13.18% higher at Rs 42.5 on the BSE at 11:30 AM
The stock rose 19.4% in July alone, outperforming the BSE index

Written By:Yash

Updated: July 31 2022 08:45:46 PM ET

IDFC First Bank shares surged 13.72% to a high of Rs 42.7 on Monday after the bank posted robust earnings in the first quarter of the fiscal year 2023.

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The bank reported its highest-ever standalone profit of Rs 474.33 crore for the quarter ended June 2022, compared to a net loss of Rs 630 crore in the same quarter last year. Net interest income increased by 26% year on year to Rs 2,751.1 crore, with net interest margin increasing by 39 basis points to 5.89%.

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“We have built a strong foundation for the bank, on the basis of which we can grow the loan book, deposits and profits comfortably from here on in a steady manner,” said V Vaidyanathan, Managing Director and CEO of IDFC First Bank.

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“We have posted the highest-ever profit after tax of Rs 474 crore in Q1FY23. Our return on assets has nearly touched 1 per cent and we expect it to rise from here. We are happy that even post the pandemic, our retail Gross NPA and Net NPA have reverted to 2.1 per cent and 0.9 per cent, respectively which is our long-term experience. More importantly, the retail asset quality has normalized sooner than our earlier guidance of March 2023,” he added.

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At 11:30 a.m., the stock was trading 13.18% higher at Rs 42.5 on the BSE, with strong volumes of approximately 66.09 lakh shares traded, compared to its two-week daily average volume of around 19.10 lakh shares. Meanwhile, the S&P BSE Sensex rose 0.53% to 57,875.17, while the BSE Bankex gained 0.51%.

From a low of Rs 28.95, the stock has risen approximately 43% in the previous seven trading weeks. The stock rose 19.4% in July alone, outperforming the BSE index by a significant margin (up 8.6%).