Promising Asset Quality

IDFC First Bank is on a firm footing with improved operating performance posted in the second quarter of 2020-21. The net interest income (difference between income earned by bank through lending and interest paid to depositors) rose 22 per cent Year-on-Year (Y-o-Y) in Q2 FY2021 as compared to Q2 FY2020. Similarly, the bank’s Net Interest Margin (NIM) improved to 4.7 per cent during the same quarter Y-o-Y. It aspires to take NIM to 5-5.5 per cent in the next five years. The net Non-Performing Asset (NPA) in retail segment stood at 0.17 per cent in Q2 FY2021 compared to 1.08 per cent in Q2 FY2020. Moratorium extended to eligible customers till August 31, 2020 has led to improved asset quality. Says an analyst with Geojit Global Financial Services, “Advance growth to pick up pace from Q3FY21 onwards, given the management remains optimistic about increase in retail assets. The...