Capital First Strategy, Loan Growth and Profitability Trends
Section 4: Retail Loans - Gross and Net NPA
Proforma
Mar-19
Jun-19
Sep-19
Dec-19
Average
Dec-20
Change
(bps) Dec-20
Gross NPA - Retail
2.19%
2.33%
2.31%
2.26%
2.27%
3.88%
Net NPA Retail
161
1.25%
1.15%
1.08%
1.06%
1.14%
2.35%
121
Provision Coverage Ratio (%)
43%
51%
54%
54%
51%
41%
•
•
•
For the analysis, it is stated that the reported NPAs in the last 3 quarters including quarter ending December 31, 2020 are low and not representative
of the real situation due to supreme Court's order on non recognition of NPAs due to standstill driven by COVID situation. Hence the bank would bring
attention to the Pre-COVID NPA levels of the bank and would compare the same with the proforma NPA as of December 31, 2020 (Post COVID).
As a result of the COVID, the Gross NPA of the retail assets for the bank as of December 31, 2020 has increased by 161 bps as compared to Pre-COVID
average. Similarly the Net NPA of the retail assets for the bank as of December 31, 2020 has increased by 121 bps.
We guide that the Gross and Net NPA levels will stabilize at around to 2.3% and 1.2% respectively within the next 3 quarters.
Section 4: Assets Quality
38
IDFC FIRST
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