Q3FY19: IDFC First Bank reports PAT of Rs. 153 crore

IDFC First Bank reports first quarterly result post its merger with Capital First. The bank's net interest margin was 3.27 per cent in Q3FY19 as compared to sequential quarter 1.7 per cent in Q2 FY 19 in the pre-merger quarter.

The bank reported a net interest income (NII) of Rs. 1,145 crore and total income (NII plus other revenues) of Rs. 1,449 crore. The Net Interest Margin (NIM) was 3.27 per cent in Q3 FY 19 (post-merger) as compared to sequential quarter 1.7 per cent in Q2FY19 (pre-merger). The expansion of the NIM was primarily due to the addition of the retail book through its merger with Capital First Limited.

Operating expenses for the December quarter were Rs. 1,142 crore which includes Rs. 370 crore of employee-related expenses. The cost-to-income ratio for the quarter was at 78.75 per cent.

The bank has accounted for the merger in accordance with the AS-14 accounting for amalgamation. All assets and liabilities of Capital First Limited and its subsidiaries have been recorded at fair value based on an independent valuation report.

The Gross NPA of the bank was at 1.99 per cent and the Net NPA was at 0.95 per cent as of December 31, 2018. The provision coverage ratio stood at 72.9 per cent as of December 2018. 
The networth of the bank was at Rs. 18,376 crore as of December 2018 and the book value per share was at Rs. 38.43. 
  
On Wednesday, the stock of IDFC First Bank closed at Rs. 41.65 per share, down by 2.69 per cent, while BSE Sensex closed at 36,975.23 level, up by 0.98 per cent.