IDFC First Bank Q1 profit more than doubles to ₹1,075 crore

The lender also booked an expense of ₹645.59 crore related to a fraud incident at a branch in Chandigarh. A forensic review by an external firm was completed during the quarter. The review confirmed that the unauthorized transactions were processed through collusion of certain employees and former employees at that branch. No further material financial adjustments are needed beyond the amount already recognized, the bank said.

During the quarter, IDFC First Bank received claim proceeds of ₹514.82 crore from the National Credit Guarantee Trustee Company under a credit guarantee scheme for micro units. That amount was accounted under provisions and contingencies.

“We are seeing strong business momentum. We believe the benefits of investments we have been making in building the bank have started playing out,” Managing Director and Chief Executive Officer V Vaidyanathan said.

The bank’s capital adequacy ratio stood at 15.05%, with a common equity tier-1 ratio of 13.33%.