Capital First Strategy, Loan Growth and Profitability Trends
Section 4: Gradual improvement in Net Interest Margins from 2.89% (merger quarter) to
4.65% in Q3 FY21.
.
The NIM of the standalone Bank IDFC bank was 1.56% in September 2018, which was the last quarter prior to the merger in December 2018. On
merger, the NIM increased to 2.89%. Since then, this gradually accelerated to 4.65% (Q3-FY21). This includes the roll back of interest income on
the proforma NPAs (without the impact of the SC order on NPA classification)
NIMs have increased every quarter due to gradual shift towards retail banking businesses.
•
As per our earlier guidance, we aspire to take it to 5-5.5% in the next 5 years. We are confident of getting there.
4.53%
4.57%
4.65%
(Pre - Merger)
1.56%
4.24%
3.86%
Post - Merger
3.43%
3.03%
3.01%
2.89%
Q2 FY19
Q3 FY19 Q4 FY19 Q1 FY20
Section 4: Key Business & Financial Parameters
Q2 FY20
Q3 FY20
Q4 FY20
Q1 FY21
Q2 FY21
Q3 FY21
IDFC FIRST
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