These financial services companies have been recently downgraded by the credit rating agencies. With provision cover of 75 per cent, the management believes the bank has adequately provided for these accounts and no incremental provisions are now expected on account of these in the near future, it added.
The bank, the management said, plans to expand the net interest margin (NIM) from 3.1 per cent to about 5.0 - 5.5 per cent in the next 5 years based on better cost of funds and carefully selecting the product segments where they have strong proven capabilities over the years.
The bank also upgraded guidance and project of the gross yield of the bank’s loan book to be at 13.5 per cent in the next five years from 9.2 per cent earlier.
At 02:55 pm, IDFC First Bank
was up 8 per cent at Rs 42 on the BSE, as compared to a 0.05 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 41 million shares changing hands on the NSE and BSE so far.