Dragged down by Mumbai toll waiver, IDFC First Bank’s net profit drops 73%

Mumbai: IDFC First Bank‘s second quarter net profit plunged over 73% to Rs 201 crore from over Rs 751 crore in the corresponding quarter of the previous year, dragged down by a Rs 253-crore provision arising from Maharashtra govt’s recent decision to waive tolls for some vehicles in Mumbai.
The bank had provided finance against the toll receivables. IDFC First did not name the company, though MEP Infrastructure is the concessionaire (collecting agency) for tolls at Mumbai’s five entry points. The bank said it would recognise this back as profits depending on toll collections and govt’s compensation to the client.
The bank’s net interest income rose to Rs 4,788 crore in the July-Sept quarter. That was an increase of 21% over Rs 3,950 crore in the corresponding quarter of 2023-24. Deposits were Rs 2,18,026 crore, a 32.4% increase over Rs 1,64,726 crore in the same period last year. tnn