X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
IDFC Bank: Treasury Income Drives Earnings Growth - Views on News from Equitymaster
StockSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

IDFC Bank: Treasury Income Drives Earnings Growth
Dec 2, 2016

IDFC Bank declared its results for the second quarter of the financial year 2016-17 (2QFY17). Since the bank commenced operations on 1st October 2015, the year-ago figures are not available for comparison.

Performance summary
  • Interest Income grew by 5.4% QoQ on a 9% QoQ growth in net advances.
  • Due to a faster rise in interest expense, net interest income declined by 0.7% on a Q0Q basis to Rs 4.9 bn in 2QFY17. For 1HFY17, the net interest income stood at Rs 9.9 bn.
  • NIMs (net interest margin) contracted by 0.2% QoQ to 2.2% in 2QFY16. For 1HFY17, the NIMs stood at 2.3%.
  • Backed by gain of Rs 1.2 billion from the sale of investments, non-interest income grew by 101% in 2QFY17.
  • The cost-to-income ratio fell to 35.7% in 2QFY17 as compared to 38.9% in the preceding quarter.
  • There has been no change in the stressed asset portfolio of the bank. Net NPAs (Non Performing Assets) ratio increased marginally to 2.4% in 2QFY17.
  • Aided by higher treasury income and slight fall in provisioning, net profit recorded a steep 46.5% QoQ jump in net profit in 2QFY17. The Return on assets increased by 0.4% to 1.5% in 2HFY17.
  • Capital adequacy ratio stood at 19.2% of which Tier I capital ratio stood at 18.7% at the end of 1HFY17.

    Financial snapshot
    Rs (m) 1QFY17 2QFY17 Change 1HFY17
    Interest income 19,755 20,830 5.4% 40,585
    Interest expense 14,766 15,874 7.5% 30,640
    Net Interest Income 4,989 4,956 -0.7% 9,945
    Net interest margin (%) 2.40% 2.20% 2.3%
    Other Income 2,128 4,101 92.7% 6,230
    Other Expense 2,768 3,234 16.8% 6,002
    Provisions and contingencies 236 223 -5.4% 460
    Profit before tax 4,113 5,600 36.2% 9,712
    Tax 1,465 1,722 17.6% 3,187
    Profit after tax/ (loss) 2,648 3,878 46.5% 6,525
    Net profit margin (%) 13.4% 18.6% 16.1%
    No. of shares (m) 3,395
    Book value per share (Rs)* 42.1
    P/BV (x) 1.59

    * (Book value as on 30th Sept 2016)

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Except for IDFC Bank, Equitymaster has no financial interest in any other Subject Company forming a part of this report.
  3. Equitymaster's investment in the subject company is as per the guidelines prescribed by the Board of Directors of the Company. The investment is however made solely for building track record of its services.
  4. Except for IDFC Bank Equitymaster's Associate has no financial interest in any other Subject Company forming a part of this report.
  5. Equitymaster's Research Analyst or his/her relative have no financial interest in the subject company.
  6. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  7. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

IDFC BANK LTD SHARE PRICE


Aug 22, 2017 (Close)

TRACK IDFC BANK LTD

  • Track your investment in IDFC BANK LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MARKET STATS