Provisions and contingencies jumped to Rs 153.17 crore in Q3FY2015 from Rs 36.52 crore in Q3FY2014. The company has been improving floating provision buffer. Depreciation provisions declined 27% to Rs 5.78 crore. The PBT declined 8% to Rs 630.25 crore in the quarter ended December 2014. Tax rate surged to 32% in Q3FY2015 from 26.4% in Q3FY2014. PAT declined 16% to Rs 421.6 crore for Q3FY2015.

Net Interest Income (NII) was flat at Rs 661 crore in Q3FY2015 over Q3FY2014. NII from loans declined 7% to Rs 567 crore, while the NII from treasury operations surged 76% to Rs 95 crore in the quarter ended December 2014. Average spreads declined to 2% in twelve months ended December 2014 compared to 2.3% in the twelve months ended December 2013.

Non-interest Income surged 70% yoy to Rs 317 crore in Q3FY2015, as fixed income turned positive to Rs 128 crore in Q3FY2015 from losses of Rs 29 crore in Q3FY2014. The asset management fees moved up 32% to Rs 115 crore in Q3FY2015, but gains on principal investments dipped 36% to Rs 57 crore in Q3FY2015. Investment banking and broking fees dipped 32% to Rs 13 crore in Q3FY2015.

Asset Quality

The asset quality was nearly steady in the quarter ended December 2014. GNPA ratio rose 06 bps qoq as well as yoy to 0.68% at end December 2014. Meanwhile, the NNPA ratio rose 05 bps qoq, while declined 03 bps yoy to 0.47% at end December 2014.

Restructured loans were flat qoq at 6.1% of loan book at end December 2014.

Capital Adequacy Ratio stood at 24.9% at end December 2014

Book value of the company stood at Rs 109.2 per share, while the adjusted book net of NNPA and 10% of restructured advances stood at Rs 105.6 per share at December 2014.

9M Financial Performance

Total Income grew 9% yoy to Rs 7138.69 crore in the nine months ended December 2014 (9MFY2015). Interest expenses increased 10% to Rs 4172.53 crore and the other expenses increased 34% to Rs 514.12 crore in 9MFY2015. Operating profits increased 3% to Rs 2452.04 crore in 9MFY2015. Provisions and contingencies zoomed more than four-times to Rs 638.28 crore. PBT, as a result, declined 15% to Rs 1881.25 crore. Tax Provisions eased 19% yoy to Rs 526.73 crore in 9MFY2015. Finally, the PAT declined 15% to Rs 1324.74 crore in 9MFY2015 over 9MFY2014.

Net Interest Income (NII) declined 2% to Rs 1992 crore. NII from loans declined 8% to Rs 1740 crore, while NII from treasury operations increased 65% to Rs 252 crore in 9MFY2015.

Non-Interest Income rose 25% to Rs 900 crore, as the income from principal investments advanced 28% to Rs 334 crore. Fees from IDFC's asset management business moved up 17% to Rs 320 crore in 9MFY2015. Income from Investment banking and broking jumped 33% to Rs 53 crore. Fixed income jumped 69% to Rs 154 crore, but loan related fees fell 30% to Rs 38 crore in 9MFY2015 over 9MFY2014.

• The balance sheet increased by 23% from Rs 70,073 crore to Rs 86,388 crore as on December 2014.
• Gross Loan book decreased by 1% from Rs 54,552 crore as on December 2013 to Rs 54,004 crore as on December 2014.
• Gross Approvals decreased by 25% from Rs 20,410 crore in 9MFY14 to Rs 15,359 crore in 9MFY15.
• Gross Disbursements increased by 16% from Rs 7,639 crore in 9MFY14 to Rs 8,843 crore in 9MFY15.
• Cumulative Outstanding Approvals was Rs 74,882 crore as on December 2014.
• Net Restructured Loans as on December 2014 was 6.1% of gross loans.
• Average spreads on a rolling 12 month period ending Dec-14 was 2.0% (FY14 – 2.3%)
• NIMs for rolling 12 month ending Dec-14 was 3.7% (FY14 - 4.0%)
• Capital Adequacy at 24.9% as on December 2014 (of which Tier I at 22.8%)
• Gross NPLs at 0.7% and Net NPLs at 0.5% of outstanding loans.
• Average Assets under management – Rs 61,073 crore