IDFC First Bank, an Indian banking company headquartered in Mumbai, is factoring in overall restructuring of about 4% of its mortgage e-book. It accounts for Rs 1.06 lakh crore under the COVID-19 recast. The financial institution had received Rs 200 crore worth of retail restructuring proposals via its online portal.
The bank’s retail e-book was uplifted by 25% to Rs 59,860 crore over the year-ago quarter. The total advances of their e-book are declined by 1%, whereas the home loans, automobile loans, and rural loans lead the way to grow advances.
On the bank’s website, they had imparted an end-to-end-restructuring journey for their retail customers. The restructuring window is exclusively open for corporates till December 31. The bank had gained proposals value Rs 200 crore, which is 0.4% of their customer base. And also they had got some requests from the corporate side which is been kept under consideration.
The lender anticipates that retail will constitute about 70% of its entire e-book at the end of the year. Amidst the pandemic, the bank had remained fruitful and profitable and also their collections have shown tremendous growth. As a result, the bank’s book has started to grow and their disbursements had covered 90% of what it was in September last year. It was a symbol showing that normalization is fairly undertaken.
The bank had concentrated more on building its fundamentals, which includes growing retail liabilities, especially Current and Savings Account (CASA) deposits that would guarantee adherent customer base and deposit base. The liabilities of financial institutions grew with CASA deposits. It was increased at 142% to Rs 30,181 crore at the end of the September quarter. Core deposits – a combination of both retail CASA and retail period deposits increases to Rs 49,610 crore. Therefore, the financial institution has undergone more and more decline in its dependence on wholesale and market borrowings, thus changing it with their retail deposits.
The IDFC First Bank is satisfied with the provision cover that they had kept aside to meet their unexpected losses during COVID-19 pandemic. The only set back that they have left to factor in is their infrastructure book. So through this restructuring, the bank believes that they will remain profitable when the posting of losses is over.
