IDFC First Bank aims gross NPA of 2 percent

The bank gross NPA level stood at 4.15 per cent in FY 2021, against 2.60 per cent in FY 2020

The IDFC First Bank is aiming to bring down its gross non-performing assets (NPA) level to 2 percent and net NPA level to 1 per cent.

 

IDFC First Bank Managing Director and Chief Executive Officer V Vaidyanathan, in his message to the shareholders in the annual report had said, “We will be targeting a 2-1-2 formula, that is Gross NPA of 2 percent, Net NPA of percent and provisions of 2 percent on funded assets on a steady-state basis.”

 

The bank gross NPA level stood at 4.15 per cent in FY 2021, against 2.60 per cent in FY 2020.

 

Vaidyanathan said that the bank’s provisions for FY 2021-22 is anticipated to be only 2.5 per cent of the average loan book that is quite rational by industry standards.

 

He added that out of which a substantial portion has already been taken in quarter 1 of FY 2022 and it can be anticipated that the provisions will be successively fell provisions in quarter 2, quarter 3 and quarter 4 FY 2022.

 

Vaidyanathan said, “Going forward we expect to keep our provisions at below 2 percent of the average loan book.”

 

Vaidyanathan told the shareholders that they expect profitability to surge as they expand the loan book.

India Scanner News Network

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