Capital First Strategy, Loan Growth and Profitability Trends
Section 4: Since Retail Loans model imported from Capital First is the key model for loans going forward, we present
asset quality trends over the last 8 years at Capital First as below as a demonstration of our trend in asset quality and
our capabilities in this space. The incipient retail loan of erstwhile IDFC bank is also demonstrating strong asset quality.
Since most of the loan book in the merged entity has been built and seasoned in Capital First prior the merger and the same model is being scaled
up now, we present below the asset quality trends of the book in Capital First which have stayed continuous steady over the years, i.e. Gross NPA
~2% and Net NPA ~1%. The portfolio remained stable even after being stress tested through economic slowdown in 2010-2014, demonetization
(2016), GST implementation (2017) and economic slowdown in recent times. Hence gives us confidence to grow in future on this strong asset
quality model.
Largely Wholesale Loan
5.28% Book during this phase
CFL-GNPA
CFL-NNPA
During this phase, the Company transformed into a Retail Financing Player with introduction of many Retail
Loans products and scaling up businesses with high asset quality
3.78%
Demonetization
Nov 8th 2016
GST Launched
July 1st 2017
1.74%
1.21%
1.71%
1.52%
1.59%
1.65%
1.72%
1.63%
1.59%
1.62%
1.57%
1.13%
0.97%
1.00%
1.00%
1.04%
1.00%
0.97%
1.00%
1.00%
"
31-Mar-10
31-Mar-16 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18
Note: NPA recognition norm migrated to 90 dpd effective from 01 April, 2017.
Section 4: Assets Quality
36
IDFC FIRST
BankView entire presentation