IDFC FIRST bank has achieved the lowest-ever gross non-performing asset of 1.88 per cent in FY24, as per V Vaidyanathan, Managing Director & CEO. Vaidyanathan made this statement in the bank's integrated annual report for 2023-24.
The private bank recorded a profit of Rs 2,957 crore in FY24. While deposit pressures continue to loom, the bank's total deposits have crossed ₹2,00,000 crore
IDFC FIRST bank has achieved the lowest-ever gross non-performing asset of 1.88 per cent in FY24, as per V Vaidyanathan, Managing Director & CEO. Vaidyanathan made this statement in the bank's integrated annual report for 2023-24.
He said, "Our CASA Ratio is strong at 47 per cent. Our loan book is well-diversified across 25 product lines with no product contributing >15 per cent of the loan book. We have the lowest ever NPA (GNPA of 1.88 per cent and NNPA of 0.6 per cent) in our history."
Additionally, speaking about loan book diversification, Vaidyanath mentioned that the bank has diversified its loan portfolio across 25 different product lines. This, in turn, reduces risk concentration and ensures balanced growth.
Now, coming to the financial performance, the private bank recorded a profit of Rs 2,957 crore in FY24. While deposit pressures continue to linger, the bank's total deposits have crossed ₹2,00,000 crore of the bank.
Artificial Intelligence is something that is everywhere. Banks are no exception to it. Speaking about the importance of AI on the same, Vaidyanathan said, "We have developed advanced data science and analytics using artificial intelligence and machine learning. We have hired skilled professionals in predictive analytics to leverage big data for customer insights and decision-making."
Coming to the merger between IDFC First Bank and IDFC Limited that was approved by majority shareholders recently, Vaidyanathan said that the ongoing merger will help position the bank as a standalone institution.
He said, "We are in the process of merger with IDFC Limited. Post merger, IDFC FIRST Bank shareholding will be as one of an independent standalone institution like ICICI Bank or HDFC Bank. We can grow for decades to come; today is only the beginning. HDFC Bank and ICICI Bank in India have posted advances at 20-30 per cent for nearly 30 years and still growing advances at 16-17 per cent."
On the ESG front, the company has financed over 300,000 MSMEs and issued more than 3 million livelihood loans, primarily for cattle-related activities. The banking firm has disbursed 3,50,000 WASH (Water and Sanitation) loans, financed over 60,000 rural homes and supported the purchase of 2,00,000 electric vehicles. Interestingly, nearly 55 per cent of the rural borrowers are women.