IDFC First Bank on Saturday reported a 266 percent jump in its net profit at Rs 556 crore for the quarter that ended September 2022 on the back of strong growth in core operating income.

The private sector lender had posted a net profit of Rs 152 crore in the same quarter a year ago. Its core operating income (excluding trading gains) rose by 35 percent from a year ago to Rs 3,947 crore in the second quarter of the 2022-23 fiscal year, it said in a regulatory filing.

V Vaidyanathan, managing director, and chief executive officer of IDFC First Bank, said the bank has guided for loan growth of 20-25 percent for FY23.

Also Read: IDFC First Bank Q2 result: Net Profit jumps 266% to Rs 556 crore

"The bank's loan book growth is 25 percent and deposit growth is 37 percent. Even into the rest of the year, we see our deposits growing very strongly. The inflow of money into the bank is very strong," he said.

CEO said the net interest margins for FY23 will continue to be in the range of 5.8-6 percent, "In the corridor of 5.8-6 percent through the rest of the year, you can expect NIMs to happen, you can expect deposits to come, you can expect loan book to grow," he said.

The credit cost was at 1.2 percent for quarter two and he believes it will remain low for the rest of the two quarters as well.

Asset quality was better with gross non-performing assets (NPA) coming down to 3.18 percent of the gross advances as of end-September 2022 from 4.27 percent a year ago.

Net NPAs were also down at 1.09 percent as against 2.19 percent. The bank said its provisioning for the quarter came down by 11 percent from a year ago to Rs 424 crore.

For the full interview, watch the accompanying video