IDFC First Bank posts Rs 680 cr loss on one-time tax impact

A loss of Rs 680 crore has been reported by IDFC First Bank taking an one-time impact on deferred tax asset markdown as against Rs 617 crore in the quarter ago period. The profit before tax came at Rs 100 crore, as against a loss of Rs 583 crore in the year-ago period.

“The key aspects this quarter are maiden profitability and strong growth in retail deposits and CASA addition of Rs 6,000 crore,” its managing director and chief executive V Vaidyanathan said.

The bank, which has been formed with the merger of infra-focused IDFC Bank and the non-bank lender Capital First in January 2019, reduced its loan book by over Rs 5,000 crore to focus only on retail loans during the quarter, which now constitute 45% of the book.

While the overall loan book has gone down, it is a more profitable growth as the retail loans are more profitable and has grown by Rs 3,400 crore last quarter, Vaidyanathan said.