IDFC reports 57% increase in Q4 net profit
Bank also announces founding chairman Deepak Parekh has stepped down from the board; MD Rajiv Lall to take over
Mumbai: IDFC Ltd on Wednesday said net profit in January-March increased 57% to ₹ 526 crore from ₹ 335 crore in the same period last year, driven by interest income and gains on investments.
The profit was higher than the ₹ 483 crore predicted by a poll of analysts by Bloomberg.
Net interest income increased 10% to ₹ 643 crore from ₹ 585 crore in the year-ago period, mainly because the company earned ₹ 603 crore from interest on loans, up 12% from the ₹ 540 crore it earned last year.
Profit was helped by gains made by the company in its equity investments, the value of which rose to ₹ 129 crore from ₹ 29 crore last year. Adjusting for these gains, the profit was up 37% to ₹ 423 crore from ₹ 308 crore last year.
For financial year 2012-13, IDFC earned a net profit of ₹ 1,836 crore up 18% from ₹ 1,554 crore in 2011-12. Earnings per share improved to ₹ 12.06 per share in 2012-13 from ₹ 10.20 in 2011-12.
On Tuesday, IDFC shares ended at ₹ 152.85 on the BSE, down 2.52% from the previous close, while India’s benchmark Index Sensex closed at 19,504.18, up 0.60%. Markets were shut on Wednesday.
IDFC also announced that its founding chairman Deepak Parekh had stepped down from the board after a 15-year stint and vice chairman and managing director Rajiv Lall will take over as executive chairman of the board while deputy MD Vikram Limaye was named as the MD and CEO.
“Both these appointments take effect from the close of business hours today and are subject to ratification by the shareholders in the ensuing annual general meeting," IDFC said in a statement.
Parekh will remain associated with the company in his new capacity as chair of IDFC’s advisory council, a three-four member consultative body, to be constituted over the next few months, the company said.
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