NEW DELHI: Private lender IDFC Bank has reported a jump of 65.3 per cent in its net profit at Rs 437.59 crore for the first quarter ended June as bad assets declined and investment income rose.
Net profit in the corresponding quarter in 2016 stood at Rs 264.76 crore.
Total income increased to Rs 2,794 crore for April-June of 2017-18, as against Rs 2,189 crore in the year-ago period, the bank said in a regulatory filing.
The lender registered smart gains on investments as income from such sources jumped to Rs 972 crore for the reported quarter from Rs 688 crore a year before.
Net interest income declined 15 per cent to Rs 438 crore for the quarter, from Rs 515 crore year ago.
Its asset quality improved as proportion of gross nonperforming assets (NPAs) fell to 4.1 per cent of total advances as on June 30, 2017, from 6 per cent a year ago.
Net NPAs, or bad loans, were 1.7 per cent of net advances by June-end 2017 as against 2.3 per cent in 2016.
Thus, provisioning and contingencies declined.
"There was no incremental impact on provisioning for the quarter," IDFC Bank said in a statement.
The lender said it has strengthened human capital as the employee base grew 7 per cent sequentially to 4,194.
Stock of IDFC Bank was down 1 per cent at Rs 59.65 on the BSE.